Omicron impact concern forces RBI to keep reverse repo rate unchanged

Variable rate reverse repo auction seems to be the central bank's mode to fine tune excess liquidity.

The monetary policy committee (MPC) of the Reserve Bank of India on Wednesday kept the key interest rate (repo) unchanged at 4% for the ninth straight policy meeting and maintain an accommodative stance—a policy statement widely expected.

The market was split on whether there would be a hike in the reverse repo rate: a view echoed by one MPC member, Jayanth Varma. The gap between the repo and the reserve repo rate was widened at