New Delhi: The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Thursday announced the repo rate unchanged at 4 per cent and maintains accommodative stance; While the reverse repo rate remains unchanged at 3.35 per cent, said Governor Shaktikant Das.
The market is widely expected that the RBI might raise the reverse repo rate by 15-40 bps. There is also talk of a hike in the cash reserve ratio (CRR), because there may be a need for the RBI to conduct open market operations to infuse liquidity.
The RBI had during its last bi-annual meet decided to keep the interest rates unchanged at record lows given the emergence of the Omron variant of Covid-19, which caused the third wave in India. The monetary policy meet of the RBI comes days after Union Finance Minister Nirmala Sitharaman presented the Budget 2022 at the Parliament.
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