RBI Repo rate: The Reserve Bank of India Thursday announced to keep the repo rate unchanged at 4 per cent. This is for the 10th time in a row as it continued with accommodative stance.
The reverse repo rate was also kept unchanged at 3.35 per cent. RBI governor Shaktikanta Das elaborates that the decision has been taken as continued policy support was warranted to support India’s economic growth.
Shaktikanta Das also stated that the GDP growth of 9.2 per cent in FY22 (2021-22) would take the economy above pre-pandemic level and projected 7.8 per cent growth for the next financial year 2022-23.
RBI has pegged CPI or retail inflation at 5.3 per cent for FY22 and 4.5 per cent in 2022-23. The central bank mainly factors in retail inflation to arrive at its policy decision.
The Reserve Bank governor also stated that the cap for e-RUPI digital voucher has been raised from Rs 10,000 to Rs 1 lakh.
RBI keeps Repo Rate unchanged
What is Repo rate?
It is the rate at which a central bank lends money to banks, and reverse repo rate is at which it borrows from commercial lenders.
Since 2020, RBI has held the key repo rate at record lows in the wake of Covid-19 pandemic. This Reserve has been mandated by the government to keep the inflation in the range of 2-6 per cent.
The domestic indices BSE and NSE have gained more than half a per cent after the RBI’s Monetary Policy decision.
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