Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday announced that the Monetary Policy Committee (MPC) unanimously decided to keep the key interest rates unchanged. This is the 11th time in a row when the RBI didn't change the key rates. Accordingly, the repo rate stands at 4 per cent and the reverse repo rate at 3.35 per cent.
This was the first meeting of the MPC, headed by RBI Governor Shaktikanta Das, in the current financial year. There were expectations that the MPC will retain the status quo on interest rates but change its monetary policy stance amid rising inflation on account of geopolitical developments.
Addressing the media while announcing the bi-monthly monetary policy review, Shaktikanta Das said that the rate-setting panel members unanimously agreed on not hiking the interest rate.
In the last 10 meetings, the MPC left interest rate unchanged and also maintained an accommodative monetary policy stance. The repo rate or the short-term lending rate was last cut on May 22, 2020. Since then, the rate remains at a historic low of 4 per cent.
The central bank, however, revised its stance to less accommodative to revive, sustain growth and contain inflation.
Das said that the Indian economy has been comforted by large forex reserves and that the central bank stands ready and resolute to defend the economy. "Indian economy is steadily reviving from pandemic-induced slowdown," he said.
