Monetary policy: RBI keeps rates unchanged, cuts growth forecast

Repo rate stays at 4%, stance accommodative; Central bank to buy Rs 1.2 trillion of bonds in Q2

The Reserve Bank of India (RBI) on Friday kept its policy rates unchanged, scaled down the growth projections for the current financial year by a full percentage point, and said it would buy Rs 1.2 trillion of government securities under its own version of quantitative easing for the second quarter.

The six-member monetary policy committee (MPC) decided unanimously to keep the repo rate unchanged at 4 per cent. The stance remains “accommodative” for “as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation