Sat, 19 Sep 2020

RBI keeps repo rate unchanged at 4 pc

06 Aug 2020, 17:27 GMT+10

Mumbai (Maharashtra) [India], Aug 6 (ANI): The Reserve Bank of India on Thursday kept the Repo rate unchanged at 4 per cent in view of the uncertain inflationary scenario.

It also kept the reverse repo rate unchanged at 3.35 per cent while maintaining the accommodative stance in the latest monetary policy.

"Accommodative stance of the monetary policy will continue as long as necessary to revive growth and mitigate the impact of COVID19 pandemic while ensuring that inflation remains within target going forward," said RBI Governor Shaktikanta Das.

"RBI is perhaps the only central bank in the world which has set up a special quarantine facility for continuity of critical operations," he added.

The RBI Governor also said that the Monetary Policy Committee (MPC) noted that in India too, economic activity had started to recover, but surges of fresh infections have forced fresh lockdowns, hence several high-frequency indicators have levelled off.

"Taking into consideration all factors, the GDP growth in the first half of the year is estimated to remain in the contraction zone. For the year 2020-21 as a whole, real GDP growth is also estimated to be negative," he added. (ANI)

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