The Reserve Bank of India’s (RBI) monetary policy committee (MPC) on Wednesday unanimously decided to keep repo rate unchanged at 4 per cent for the tenth consecutive time and continued with the accommodative stance.
Repo rate is the rate at which the RBI lends to banks, while reverse repo rate is the rate at which it borrows from banks.
The reverse repo rate also remains unchanged at 3.35 per cent, Das said after the MPC meeting. With a 5:1 majority, the rate-setting panel of the RBI also decided to retain the accommodative policy stance to support economic growth and recovery, he added.
“India is charting a different course of recovery than the rest of the world, to be the fastest-growing economy,” Das said.
The MPC also decided to keep the marginal standing facility (MSF) unchanged at 4.25%. It pegged the GDP growth rate at 7.8 per cent for FY23 and project the CPI-based inflation at 4.5 per cent in the same period.
(With inputs from agencies)
