The MPC had convened for this three-day meeting on August 4-6.
The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) on August 6 kept the repo rate and reverse repo rate unchanged.
The MPC maintained the policy stance at accommodative, RBI Governor Shaktikanta Das said.
The repo rate is currently 4 percent, while the reverse repo rate is 3.35 percent.
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Repo rate is the rate at which RBI lends funds to commercial banks when needed. In 2020, the RBI had already cut basis by 115 basis points.
The MPC had convened for the three-day meeting from August 4-6.
The MPC forecasts headline and retail inflation to remain elevated in the second quarter of FY21.
"Space for further monetary action is available but advisable to be judicious," Das said while addressing the media.
"MPC will remain watchful w.r.t. inflation dynamics to further use space available on monetary side when appropriate. Transmission wouldn't have been possible without creating easy liquidity conditions. Easing of liquidity conditions has enhanced transmission," he said.
"Early signs of revival in May/June subdued in July due to renewed surge in COVID-19 cases," Das said.
Speaking about economic growth, Das said India's real gross domestic product (GDP) growth "will remain in the negative zone" in 2020-21.(This is a developing story. Please check back for updates.)