Central Bank of India Keeps Rates Unchanged

India’s central bank left its key interest rates unchanged on Wednesday, as widely expected.

The Monetary Policy Committee of the Reserve Bank of India, led by Governor Shaktikanta Das, decided to hold the key repo rate at 4.00 percent. The reverse repo rate was left unchanged at 3.35 percent.

The MPC has judged that the ongoing domestic recovery needs sustained policy support to make it more broad-based.

By a majority of 5 to 1, the MPC voted to retain the accommodative policy stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward.

The central bank retained the projection for real GDP growth for the financial year 2021-22 at 9.5 percent. Also, the RBI maintained its inflation outlook at 5.3 percent.