Mumbai: The Reserve Bank of India announced the monetary policy on Friday. The Monetary Policy Committee (MPC) of the apex bank decided to maintain the status quo on repo rate. The repo rate will be 4% and reverse repo rate will be 3.35%. This is the first bi-monthly policy for the current financial year 2022-23.
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. This is the 11th time in a row that MPC has decided to keep the interest rate unchanged. RBI changed the interest rate lastly in May 2020.
RBI said it would restore the width of the liquidity adjustment facility to 50 basis points (bps). The MPC also decided to keep the marginal standing facility (MSF) unchanged at 4.25%. It kept the GDP growth rate at 7.2% for the current fiscal year.
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