Reserve Bank of India has decided to keep the repo rate unchanged at 4 per cent. Keeping the key lending rate stagnant, RBI Governor Shaktikanta Das said during the Monetary Policy Committee meet that an accommodative policy stance will be maintained.
"The MPC evaluated domestic and global macroeconomic and financial conditions and voted unanimously to leave the policy repo rate unchanged at 4 per cent. It also decided to continue with the accommodative stance of monetary policy as long as necessary -- at least during the current financial year and into the next year -- to revive growth on a durable basis and mitigate the impact of COVID-19, while ensuring that inflation remains within the target going forward," said Das during the announcements.
Marginal Standing Facility and bank rates have also been kept unchanged. "The Marginal Standing Facility (MSF) rate and the Bank rate remain unchanged at 4.25 per cent. The reverse repo rate stands unchanged at 3.35 per cent," said the Governor.
RBI last revised its policy rate on May 22. The RBI maintained status quo for the second time in a row. The reverse repo rate will continue to earn 3.35 per cent for banks for their deposits with RBI.
The MPC meeting was held with three new external members -- Ashima Goyal, Jayanth R Varma and Shashanka Bhide -- starting October 7. The MPC meeting was earlier slated between September 29 and October 1 but was deferred for the first time as the government failed to appoint external members before the scheduled date.