The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) voted on Wednesday to keep the benchmark repo rate and reverse repo rate unchanged at historically low levels because the central bank retained Asia’s gross domestic product (GDP) ) Growth targets. The growth rate of the third largest economy in the 2021-22 fiscal year is 9.5%.

For the ninth time, MPC maintains its bimonthly policy rate status, as policymakers weigh the impact of the latest variant of Covid-19, Omicron.

The repo rate remains unchanged at 4%, while the reverse repo rate remains at 3.35%. Marginal Standing Facility (MSF) and bank interest rates also remained unchanged at 4.25%.

The repo rate refers to the interest rate at which commercial banks borrow funds by selling securities to the Reserve Bank, while the reverse repo rate is the interest rate at which the central bank borrows funds.

As India promotes its nascent economic recovery during the coronavirus pandemic, these lending rates are critical to boosting corporate credit and investment in the economy. , And continue to reduce the impact of Covid-19 on the economy, while ensuring that inflation remains within the target range,” the MPC resolution pointed out.

In the accompanying statement, Reserve Bank of India Governor Shakti Kantadas stated that price stability or keeping inflation within acceptable levels is still the “basic principle” of the central bank’s monetary policy.

Das told reporters: “In view of the economic weakness and continued activities to catch up, especially private consumption is still below the pre-pandemic level, continuous policy support is needed to achieve a lasting and broad recovery.”

He added that the interference of new variants of the coronavirus may slow the recovery.

Complete News Source : Hindustan Times