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The Reserve Bank of India’s (RBI) Monetary Policy Committee has voted unanimously to keep policy repo rate unchanged at 4 percent and decided to continue with its accommodative stance in the backdrop of elevated level of inflation.
Repo is the rate which the central bank lends short term funds to banks. Reverse repo is the rate at which the RBI borrows short-term deposits from banks.
This is the tenth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo. The RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020 in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.
This is the first MPC meeting after presentation of Budget 2022-23 in Parliament on February 1.
MPC has decided to keep benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review.
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