New Delhi: Home and auto loan borrowers will have to continue with their current EMIs which are unlikely to reduce in the near term as the Reserve Bank of India kept key policy rates unchanged in its bi-monthly monetary policy review on Wednesday.
Announcing the result of its bi-monthly monetary policy rates on December 8, the central bank said that it has decided to keep the repo rate unchanged at 4 per cent and the reverse repo rate at 3.35 per cent.
Repo is the rate at which RBI lends money to commercial banks when needed. It is a tool used by the central bank to control inflation. Reverse repo rate is the rate at which RBI borrows from banks.
The MPC kept the key benchmark rate unchanged in its last eight reviews. This is the ninth time in a row that the MPC has decided to keep the policy rate unchanged. RBI last revised its policy rate on May 22, 2020 in an off-policy cycle to spur demand by historically cutting interest rates.
The 6-member MPC voted unanimously to keep the interest rate unchanged and decided to continue its accommodative stance for as long as necessary to support growth and keep inflation within target.
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