RBI Monetary Policy 2021: RBI Governor Shaktikanta Das said on Friday that the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) held the repo rate at 4% while maintaining a “accommodative stance” as long as necessary to alleviate the effects of the COVID-19 pandemic.
The Monetary Policy Committee (MPC) voted to maintain status quo ie repo rate remains unchanged at 4 per cent. MCC also decided to continue with accommodative stance as long as necessary to revive and sustain growth on durable basis and to mitigate impact of Covid on economy,” RBI governor Shaktikanta Das said.
Since March 2020, the RBI has decreased the repo rate by a total of 115 basis points (bps) to cushion the effect of the coronavirus outbreak. On June 1, the MPC, the RBI’s rate-setting panel, began its three-day monetary policy discussion. The MPC was widely expected to maintain the key repo rate. As Asia’s third-largest economy grapples with different state lockdowns, according to a recent Reuters poll, all 51 analysts surveyed expected the MPC to keep rates.