RBI Monetary Policy: Reserve Bank keeps repo rate unchanged at 4 per cent
New Delhi | Jagran News Desk: The Reserve Bank of India Monetary Policy Committee (MPC) has kept the repo rate and reserve repo rate unchanged at 4 per cent and 3.3 per cent, respectively. Announcing the policy decisions of the Monetary Policy Committee, RBI Governor Shaktikanta Das on Friday said that it has been decided to maintain the status quo on key lending rates. "The deep contraction of quarter one is behind us, the silver lining is visible," Das said adding that the mood of the nation has shifted from "fear to hope".
The RBI governor said that the Monetary Policy Committee voted to maintain the status quo on the interest rate and continued with its accommodative stand to support the growth hampered by the coronavirus pandemic.
The MPC meeting had begun on October 7. This was the first Monetary Policy Committee meeting of the three new members - Ashima Goyal, Jayanth R Varma and Shashanka Bhide. The trio was appointed for the term of four years. Their appointment had come just a day before the meeting.
The MPC meeting was originally scheduled to be held from September 29 to October 1. However, it was deferred till October 7 as the government could not appoint external members on time. The government had formed the six-member MPC in 2016 to decide on the interest rate. The committee headed by the RBI Governor comprises three external independent members.
RBI had last revised its policy rate on May 22 to increase the demand by cutting interest rate to a historic low. The MPC has been mandated to maintain annual inflation rate at 4 per cent until March 31, 2021, with an upper tolerance of 6 per cent and a lower tolerance of 2 per cent.
Posted By: Shashikant Sharma