Mumbai: The Reserve Bank of India (RBI) held key interest rates on Friday and maintained an accommodating stance amid uncertainty over the economic impact of the COVID-19 pandemic’s second wave.
The announcement comes after a three-day meeting of its Monetary Policy Committee (MPC).
The RBI kept the central bank’s interest rate unchanged at 4 percent and the reverse repo rate at 3.35 percent.
The second Covid the wave has created uncertainty around the economic outlook and pushed the potential policy normalization further into the future.
The central bank has reduced policy rates by 115 basis points since February 2020.
While the economy is slowly recovering, economists say the RBI does not want to derail the pace of growth by adjusting rates or attitudes.
Economic growth must be sustainable before rates rise at a time when inflation is rising.
Source: Telangana Today