New Delhi: Reserve Bank of India has kept the repo rate unchanged at 4 percent, maintaining an accommodative stance. This is the seventh time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo.
RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.
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Consequently, the reverse repo rate will also continue to earn 3.35 percent. RBI Governor Shaktikanta Das on Friday announced that RBI has kept the reverse repo rate at 3.35 percent for banks for their deposits kept with RBI.
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While elaborating the RBI bi-monthly monetary policy review, the RBI Governor said, "Economic activity has broadly evolved along the lines of the Monetary Policy Committee's expectations in June and the economy is recovering from the setback of the second phase of COVID-19."
As reported by PTI, Das said MPC voted unanimously for keeping the interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.
He further said that the projection for real Gross Domestic Product (GDP) growth is retained at 9.5 percent for 2021-22. CPI inflation is projected at 5.7 percent during 2021-22 - this consists of 5.9 percent in Q2, 5.3 percent in Q3, and 5.8 percent in Q4 of 2021-22 with risks broadly balanced. CPI inflation for the first quarter of 2022-23 is projected at 5.1 per cent.