RBI MPC holds repo rate at 5.25%, maintains neutral stance
Consequently, the standing deposit facility (SDF) rate remains at 5%, and the marginal standing facility (MSF) rate and the Bank Rate remain at 5.50%.
Consequently, the standing deposit facility (SDF) rate remains at 5%, and the marginal standing facility (MSF) rate and the Bank Rate remain at 5.50%.
The MPC has also revised the average headline inflation for this year to 2.6 per cent from the earlier projection of 3.7 per cent in June and 3.1 per cent in August.
RBI Governor Shaktikanta Das attributed comfortable inflation and firm growth dynamics as the reasons behind keeping the repo rate unchanged.
In its last three meetings in April, June, and August, the RBI kept the repo rate unchanged at 6.5 per cent.
Faced with elevated retail inflation in August, the Reserve Bank of India is expected to raise interest rates in the range of 35-50 basis points in its next monetary policy committee meeting, said SBI Research.
The Monetary Policy Committee (MPC) of India's central bank voted to maintain the repo rate, or short-term lending rate, for commercial banks at 4 per cent.
Consequently, the reverse repo rate, at which the RBI borrows from lenders, stood at 3.35 per cent.
Three members of the panel are from the RBI, including the Central bank's Governor and the rest three are external or independent members.
1. Governor Das said that the Reserve Bank of India (RBI) expects country’s real GDP growth rate for the first half of FY21 to remain in the negative territory. 2. The MPC expects elevated inflation levels during the second quarter but may ease in the second half of the current fiscal year.
RBI has left the benchmark repurchase (repo) rate unchanged at 4 per cent.
