Policy support: RBI MPC retains accommodative stance, rates

A security staff stands near an entrance of the Reserve Bank of India (RBI) headquarters in Mumbai. Pic/AFP

To support a faster economic recovery amid the surge in Covid-19 cases, the Reserve Bank retained its key short-term lending rates along with the growth-oriented accommodative stance during the first monetary policy review of FY22.

Accordingly, the Monetary Policy Committee (MPC) of the central bank voted to maintain the repo rate, or short-term lending rate, for commercial banks, at 4 per cent.

Likewise, the reverse repo rate was kept unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the 'Bank Rate' at 4.25 per cent. It was widely expected that MPC would hold rates and the accommodative stance.

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