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RBI monetary policy announcements: Highlights and key takeaways

This is the fourth time in a row that MPC has decided to keep the policy rate unchanged at 4%. The central bank had slashed the repo rate by 115 basis points since late March 2020 to support growth

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Shaktikanta Das | RBI monetary policy | repo rate

Sukanya Roy  |  New Delhi 

Governor today announced that the central bank's Monetary Policy Committee (MPC) has unilaterally decided to keep policy rate unchanged at 4%. But maintained an accommodative stance, implying rate cuts in the future if need arises to support the economy hit by the Covid-19 pandemic. This is the fourth time in a row that MPC has decided to keep the policy rate unchanged. The central bank had slashed the by 115 basis points since late March 2020 to support growth.

To recall, is the rate at which the lends money to commercial banks, in case there is any shortfall of funds.

Consequently, the reverse will also continue to earn 3.35 per cent for banks for their deposits kept with and the marginal standing facility (MSF) rate and the bank rate at 4.25 per cent.

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First Published: Fri, February 05 2021. 13:27 IST
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