RBI keeps its key rates unchanged

The Monitoring Policy Committee (MPC) of the Reserve Bank of India kept interest rates steady at record lows on August 6. While the repo rate, RBI’s key lending rate, was kept at 4 pc, the reverse repo rate, the borrowing rate, remained unchanged at 3.35 pc.

“The need of the hour is not to drop our guard and to remain vigilant against any possibility of a third wave especially in the background of rising infections in certain parts of the country,” RBI Governor Shaktikanta Das said in a virtual address accompanying the MPC’s decision.

All members voted in favour of the decision to hold rates and a 5-1 majority supported retaining the accommodative monetary policy stance, Das said further.