Key Lending Rate Unchanged At 4%; RBI Says "Need Of Hour To Back Growth"

Friday, 5 February 2021Newsdesk

Reserve Bank of India (RBI) Governor Shaktikanta Das said the Monetary Policy Committee (MPC) has decided to maintain key policy rates at existing levels. The Reserve Bank has kept the repo rate unchanged at 4 per cent and reverse repo rate untouched at 3.35 per cent, saying that the "need of the hour is to back growth." The policy decision comes at the end of the first meeting of the six-member Monetary Policy Committee (MPC) after Budget 2021.

New Delhi, 05 February 2021

As per news report of NDTV, the Reserve Bank has slashed its key lending rate i.e. repo rate by 115 basis points since March 2020 to cushion the economy from the shock of coronavirus crisis. The central bank had last cut its policy rate on May 22, 2020, in an off-policy cycle, when Covid-19 posed an unprecedented challenge to the economy. Since then, the banking regulator has maintained the status quo on repo rates for repo rate - the key interest rate at which the RBI lends money to commercial banks - steady at a 19-year low of 4 per cent. The reverse repo rate - the rate at which the RBI borrows from banks - is at 3.35 per cent.

Source -NDTV