The Reserve Bank of India (RBI) on Friday, August 6, determined to keep the benchmark interest rates unchanged for the seventh consecutive time and continued with an accommodative stance, citing the need to support ongoing growth recovery amid continued uncertainty and global financial market volatility.
RBI Governor Shaktikanta Das said the reverse repo rate at 3.35 percent, for banks for their deposits kept with the central bank. This is the seventh successive time that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo. RBI had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting the interest rate to a historic low.
RBI Governor said MPC voted unanimously for keeping the interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target. Meanwhile, the MPC of the RBI has also projected the GDP growth at 9.22 percent for the FY 2021-22. Meanwhile, the RBI has hiked the CPI inflation which is projected at 5.7 percent during 2021-22.
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