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RBI Maintains Status Quo On Key Rates: Here's What Experts Said

RBI Maintains Status Quo On Key Rates: Here's What Experts Said

NDTV
Friday, April 8, 2022 6:08 AM GMT

The Reserve Bank of India's monetary policy committee kept the bank's key lending rate at a record low on Friday, as expected, as it sought to support economic growth even as inflation

The Reserve Bank of India's monetary policy committee kept the bank's key lending rate at a record low on Friday, as expected, as it sought to support economic growth even as inflation edged higher in the aftermath of the Russia-Ukraine war.

The monetary policy committee (MPC) held the lending rate, or the repo rate, at 4%. The reverse repo rate, or the key borrowing rate, was also kept unchanged at 3.35%.

But the central bank said it would restore the width of the liquidity adjustment facility to 50 basis points, which was seen as a first step to move away from the ultra loose monetary policy embraced during the Covid-19 pandemic.

It also raised its inflation forecast to 5.7% for the current fiscal year compared with 4.5% in the last fiscal year.

Read full story on NDTV
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