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RBI Keeps Repo Rate Unchanged At Record Low Of 4% For 8th Time In A Row

Mumbai: The RBI’s Monetary Policy Committee (MPC) on Friday decided to maintain its “accommodative stance” and keep the repo rate unchanged at a record low of 4% and reverse repo rate at 3.35%.

The rates were also left unchanged during the last MPC meeting in August 2021. Apart from these, RBI has retained Gross Domestic Product (GDP) growth target at 9.5 per cent for the ongoing Financial Year of 2021-22.

The decision was taken by the six-member Monetary Policy Committee (MPC) of India’s central bank. The announcement comes amid rising commodity prices globally and the need to control inflation domestically. Historically, the central bank last revised the policy rate on May 22, 2020, to boost demand by cutting interest rates.

The RBI governor said that high-frequency indicators suggest that the Indian economy has picked up, which will be aided by the upcoming festive season. The inflation trajectory was more favourable than expected but acknowledged that it remains sticky.

Das also said that the slowdown in demand, the festive season will boost urban demand and the recovery in demand has accelerated during the August-September period.

“India in a much better place today than at the time of the last MPC meeting. Growth impulses are strengthening, inflation trajectory more favourable than expected,” noted Das, during his address today.

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