RBI keeps key rates unchanged, fourth time in a row

The Reserve Bank of India (RBI) on Friday held key policy rates unchanged in its by-monthly Monetary Policy Committee (MPC) review meeting.

The MPC had kept key benchmark rate unchanged in its previous three announcements as well. This is a decision followed the central government’s big borrowing plan announced in the Union Budget to give growth a fresh push.

The RBI has kept the repo rate at 4 per cent and reverse repo rate at 3.35 per cent, RBI Governor Shaktikanta Das said in Mumbai after the MPC review meeting.

In the Coronavirus pandemic-hit 2020-21 fiscal, the RBI kept the policy rates in a way to allow the banking system to have extra liquidity