RBI maintains key rates, accommodative stance

Adopting a wait and watch approach, the Reserve Bank of India (RBI) retained its key short-term lending rates along with the growth-oriented accommodative stance during the final monetary policy review of FY21.

Accordingly, the Monetary Policy Committee (MPC) of the central bank voted to maintain the repo rate, or short-term lending rate, for commercial banks, at 4 per cent.

Likewise, the reverse repo rate was kept unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the ‘Bank Rate’ at 4.25 per cent.

It was widely expected that the RBI’s MPC will hold rates.

Announcing the MPC decision on a virtual platform, RBI Governor Shaktikanta Das gave a stable near term outlook on inflation.

The inflation rate, he said is seen at 5.2 per cent in Q4FY21.

Read More: https://www.bhaskarlive.in/rbi-maintains-key-rates-accommodative-stance-2nd-ld/