RBI keeps repo rate unchanged at 4%; Continues with accommodative stance

New Delhi, June 04: The Reserve Bank of India (RBI) on Friday kept its key policy rates unchanged at 4 per cent.This is the sixth consecutive time when the monetary policy committee has retained key rates. The central bank pegged the gross domestic product (GDP) growth in 2021-22 (FY22) at 9.5 per cent.

"Tough times call for tough decisions. I am convinced as we stretch out to bring the virus under control it will bring the best out of us," Governor Shaktikanta Das said in Mumbai after a three-day meeting of the regulator's Monetary Policy Committee (MPC).

With this repo rate continues to be at 4 percent, while reverse repo rate (the rate at which RBI borrows from banks) will be at 3.35%.

"Monetary Policy Committee (MCC) voted to maintain status quo i.e. repo rate remains unchanged at 4%. MCC also decided to continue with accommodative stance as long as necessary to revive and sustain growth on durable basis and to mitigate impact of COVID on economy," Das said.

"Marginal Standing Facility (MSF) rate and bank rates remain unchanged at 4.25%. The reverse repo rate also remains unchanged at 3.35%," he added.