Reserve Bank Of India Assures Ample Liquidity Even As It Holds Rates

RBI Governor Shaktikanta Das said all six members of the MPC voted in favour of keeping rates on hold and maintaining an accommodative monetary policy stance.

The Reserve Bank of India (RBI) kept interest rates at record lows on Friday and announced additional bond purchases to support the economic recovery, at risk of being derailed by a devastating second wave of COVID-19 infections. The RBI held the repo rate, its key lending rate, at 4 per cent and kept the reverse repo rate, the borrowing rate, unchanged at 3.35 per cent as predicted in a Reuters poll. RBI Governor Shaktikanta Das said all six members of the MPC voted in favour of keeping rates on hold and maintaining an accommodative monetary policy stance. "The MPC was of the view that at this juncture policy support from all sides is required to gain the momentum of growth that was evident in the second half of 2021 and to nurture the recovery after it has taken root," Das said.