- RBI commits to maintain the repo rate at 4 percent
- Monetary Committee contemplated the existing and evolving economic and financial developments globally and domestically
- Emulating the repo rate, the marginal standing facility also remained unchanged
New Delhi: RBI Governor Shaktikanta Das on Friday announced the concert to perpetuate the repo policy rate at 4 percent.
According to the Committee meeting on the 3rd,4th, and 5th of February; the committee members discussed the prevailing situations both PAN India and global. The committee decided to leave the policy repo rate consistent at 4 percent.
Sequenced to be the fourth period of RBI leaving its interest rates unchanged; a cut by a total of 115 basis points since March 2020 to revert the trauma due to pandemic was observed; post a 135 bps reduction in the first quarter of 2019.
Mr. Das added,” the committee reiterated that it will continue to support the recovering economy by ensuring ample rupee liquidity in the banking system and mitigate the impact of COVID-19 while monitoring the inflation”. He also applauded the positive growth witnessed post-pandemic deflation and is pleased with the signs of economic recovery.
The RBI has stationed the key lending rate at 4 percent while the reverse repo rate was left unchanged at 3.35%. It also presented GDP growth to be at 10.5% for the next fiscal. After busting the upper threshold continuously, CPI Inflation in December fell to 4.59%, the first time in nine months that relieved the central bank.
This is the first assembly held by the RBI Governor after the presentation of the Union Budget 2021-22.