The Reserve Bank of India (RBI) has kept the policy rates unchanged and maintained an accommodative policy stance amid uncertainty created by a fresh surge in coronavirus infections. However RBI Governor Shaktikanta Das said that the recent surge in the covid-19 cases has created uncertainty over economic growth recovery. “The recent surge in Covid-19 infections has created uncertainty over economic growth recovery,” said RBI Governor.
The policy announcement, the first for the fiscal, came days after the government maintained the RBI’s target to ensure inflation to be within 2-6 per cent band for five more years.
The repo rate and reverse repo rate thus remain unchanged at 4 per cent and 3.35 per cent respectively.
RBI Governor Shaktikanta Das-headed rate-setting panel MPC started its three-day deliberation on the next monetary policy on Monday.