New Delhi: The Reserve Bank of India (RBI) has decided to maintain key policy rates at the present levels, RBI Governor Shaktikanta Das said on Friday.
Saying that the “need of the hour is to back growth”, Das informed that the repo rate (interest rate at which the RBI lends money to banks) will remain unchanged at 4 per cent and reverse repo rate (the rate at which RBI borrows from banks) will continue to be 3.35 per cent.
This was decided at the first meeting of the six-member Monetary Policy Committee (MPC) after the Union Budget 2021 was presented by Finance Minister Nirmala Sitharaman,
According to economists, the MPC’s latest decision followed the Central government’s big borrowing plan announced in the Budget to give growth a fresh push.
Notably, the RBI had kept the key benchmark rate unchanged in its previous three announcements as well.
In the coronavirus-hit 2020-21 fiscal year, the apex bank maintained the policy rates in a way to allow the banking system to have extra liquidity.
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