Monetary policy August 2020: The MPC, meeting for the last time before the expiry of its four-year term, is mandated to strike a balance between growth and inflation.

RBI Monetary Policy August 2020 Live Updates: RBI Governor Shaktikanta Das today announced that the repo rate will remain unchanged. The RBI MPC has unanimously voted to maintain the status quo on policy rates. Shaktikanta Das added that the MPC will remain watchful with respect to inflation dynamics to further use space available on the monetary side when appropriate. He announced an additional liquidity of Rs 10,000 crore at repo rate to NABARD and NHB. The RBI MPC met at a time when the Indian economy lost momentum after showing a slight revival in the month of June. The MPC, meeting for the last time before the expiry of its four-year term, is believed to have considered the trade-offs between growth and inflation. After 250 basis points cut in the last 1.5 years, including 115 basis points cut in the repo rate since the coronavirus pandemic began, the rates are believed to be at the bottom of the cycle. However, the credit growth has remained tepid amid the pandemic; and albeit the transmission is gaining pace, it is not adequate.