Repo rates stand firm at 4% while MSF and reverse repo rates remain unchanged too. RBI governer Shaktikanta Das highlights that economy is performing better than it did in June and they would keep the rates steady to aid growth.
For the seventh time in a row, the MPC has maintained a status quo on the interest rate in order to aid growth and facilitate better recovery from second wave.
Das in his address said that the economy tends to be fairing better than it was in June and the economy has entered the recovery phase from the fix it was in during and after the second wave of Covid-19.
Along with the repo rate, the MSF (Marginal Standing Facility) rate and reverse repo rate are also unchanged and stand at 4.5 percent and 3.35 percent respectively.
MPC voted 5:1 in favor of maintaining accommodative stance to sustain growth and aid the recovery process.
According to the deliberations from the bi-monthly meet of MPC, high frequency indicators are also looking up.
As per the MPC statement this morning, “The nascent and hesitant recovery needs to be nurtured through fiscal, monetary and sectoral policy levers. Accordingly, the MPC decided to keep the policy repo rate unchanged at 4 per cent and continue with an accommodative 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.”