The Reserve Bank of India (RBI) on Thursday opted for a status quo and left interest rates unchanged, but maintained an accommodative stance, implying more rate cuts in future if the need arises to support the economy hit by the Covid-19 crisis.
The benchmark repurchase (repo) rate has been left unchanged at 4 per cent, Governor Shaktikanta Das said while announcing the decisions taken by the central bank’s Monetary Policy Committee (MPC).
Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their parked deposits kept with the RBI.
To recall, Repo rate is the rate at which the RBI lends to commercial banks, and reverse repo is the rate at which it borrows from them.
He said the MPC voted for keeping interest rate unchanged and continued with its accommodative stance to support growth. RBI had last revised its policy rate on May 22, in an off-policy cycle to perk up demand by cutting interest rate to historic low.
Listen to the podcast for 10 key takeaways from the RBI governor’s presser