The RBI maintains repo and reverses repo rates at their current levels
The Reserve Bank of India (RBI) has decided to keep the repo rate at 4% for the eleventh time in a row, and the reverse repo rate at 3.35 percent, in order to continue its accommodating policy stance.
The Reserve Bank of India’s Governor, Shaktikanta Das, headed a six-member Monetary Policy Committee (MPC) that unanimously decided to keep the repo rate at 4%. For the tenth time in a row, the price has stayed steady; it was last amended on May 22, 2020.
The decision was made, according to the RBI Governor, because continued coverage assistance was essential to boost monetary expansion and to keep the central bank’s position accommodating till the economy recovered. The most important factor to consider when deciding on a coverage option is retail inflation. The MPC has also been asked by the government to keep inflation within a range of 2 to 6 percent.
The rate at which a valuable financial institution loans money to business banks in the event of a cash shortage, and the rate at which the valuable financial institution borrows money from business banks, is known as the repo rate.
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