By Prakash Bhargava
New Delhi Oct 9 – Reserve Bank of India maintain the key lending rates on Friday in view of high inflation partly due to supply disruption along with seasonal factors. The monetary policy committee of the central bank decided to keep repo rates for commercial banks at 4 percent.
Besides, the reverse repo rate stands unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the ‘Bank Rate’ at 4.2 per cent.
“The MPC evaluated domestic and global macroeconomic and financial conditions and voted unanimously to leave the policy repo rate unchanged at 4 per cent,” RBI Governor Shaktikanta Das said.
“It also decided to continue with the accommodative stance of monetary policy as long as necessary — at least during the current financial year and into the next year — to revive growth on a durable basis and mitigate the impact of Covid-19, while ensuring that inflation remains within the target going forward.”
India’s economy is entering into a decisive phase in the fight against the pandemic. Mr Das said.
He cited that relative to pre-Covid levels, several high frequency indicators are pointing to the easing of contractions in various sectors of the economy and the emergence of impulses of growth.
“By all indications, the deep contractions of Q1:2020-21 are behind us; silver linings are visible in the flattening of the active caseload curve across the country,” Das said.
“Barring the incidence of a second wave, India stands poised to shrug off the deathly grip of the virus and renew its tryst with its pre-Covid growth trajectory.”
