Reserve Bank of India keeps interest rate unchanged

Mumbai: The Reserve Bank of India announced the monetary policy on Wednesday. The Monetary Policy Committee of the apex bank decided to maintain the status quo on repo and reverse repo rates.

The repo rate will be 4% and reverse repo rate will be 3.5%. Repo rate is the rate at which the Reserve Bank lends money to commercial banks in the country. The reverse repo rate is the rate at which the Reserve Bank borrows from the banks.

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This is the 9th time in a row that MPC has decided to keep the interest rate unchanged. RBI changed the interest rate lastly in May 2020.

The RBI has set the GDP growth rate at 9.5% for the financial year. The retail inflation is projected at 5.3%.

Address by Shri Shaktikanta Das, Governor, Reserve Bank of India https://t.co/dJRQ7nUy9L

— ReserveBankOfIndia (@RBI) December 8, 2021