RBI seen leaving repo rate unchanged in first review of FY22
April 04, 2021
To persist with accommodative stance as recovery still tentative amid rising Covid cases The Monetary Policy Committee (MPC) is likely to leave the signal repo rate unchanged in the first bi-monthly Monetary Policy Review of 2021-22 as economic recovery is still tentative and retail inflation, though within the tolerance band, surged in February.
The six-member MPC has kept the repo rate (the interest at which the Reserve Bank of India provides liquidity to banks to overcome short-term mismatches) steady at 4 per cent in the last four bi-monthly Monetary Policy Reviews.