RBI maintains status quo on policy rates

The Reserve Bank of India has decided to keep rates unchanged and maintain its accommodative stance to support growth.

The decision was taken at the meeting of the first policy review for 2021-22 by the Monetary Policy Committee, which is chaired by RBI Governor Shaktikanta Das.

“The stance will remain accommodative till the prospects of sustained recovery are well secured while closely monitoring the outlook on inflation,” Das said on Wednesday.

The repo rate continues to stand at four per cent and the reverse repo rate at 3.35 per cent.

The move comes amidst the second surge of Covid-19 cases that has raised concerns about economic recovery and rising inflation.

Das further noted that prospects for 2021-22 have improved with the Covid-19 vaccination programme but adds uncertainty to the growth outlook. Economic activity is, however, normalising despite the surge in infections.