RBI Governor Shaktikanta Das, during his MPC meet announcements on Friday, said that repo rate will be kept unchanged at 4 per cent. Reverse repo rate has also been kept unchanged at 3.5 per cent. RBI also stuck to its accommodative stance on account of the uncertainty amid the second wave of coronavirus.
Das said MPC voted unanimously to keep interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth as well as keep inflation within the target.
"The Monetary Policy Committee (MPC) met on 2nd, 3rd and 4th, June 2021 and took stock of the evolving macroeconomic and financial conditions as well as the impact of the second wave of the pandemic. Based on its assessment, the MPC voted unanimously to maintain status quo, keeping the policy repo rate unchanged at 4 per cent. The MPC also decided unanimously to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward. The marginal standing facility (MSF) rate and the bank rate remain unchanged at 4.25 per cent. The reverse repo rate also remains unchanged at 3.35 per cent," said the Governor during his address on Friday.
This is the sixth time in a row that the MPC under Governor Das has maintained policy status quo. The last revision of policy rate came on May 22, 2020.
Governor Das said that it is vital to remain focussed on vanquishing the virus as it takes its toll on human lives and livelihood. "Tough times call for tough choices and tough decisions to emerge triumphant. It is said that storms make trees take deeper roots. I am convinced that as we stretch our endurance to eradicate the virus, it will bring out the finest aspects of human character and capability," he said.
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