The Federal Reserve Bank of India (RBI) on Thursday opted for a standing quo and left interest rates unchanged, but maintained an accommodative stance, implying more rate cuts in future if the necessity arises to support the economy hit by the COVID-19 crisis
The benchmark repurchase (repo) rate has been left unchanged at 4 per cent, Governor Shaktikanta Das said while announcing the choices taken by the central bank’s Monetary Policy Committee (MPC)
Consequently, the reverse repo rate also will still earn 3.35 per cent for banks for his or her parked deposits kept with the RBI
He said the MPC voted for keeping rate of interest unchanged and continued with its accommodative stance to support growth
RBI had last revised its policy rate on May 22, in an off-policy cycle to perk up demand by cutting rate of interest to historic low.
