The Reserve Bank of India (RBI) on Wednesday retained its key lending rates and along with the growth-oriented accommodative stance at the pan-ultimate monetary policy review of FY22 to support the economy of the country. The RBI formulated the decision keeping in mind the concerns over the Omicron variant of the coronavirus.
Key Points :
1. The repo rate or the short-term lending rate, for commercial banks remains at 4 per cent as the Monetary Policy Committee (MPC) of India's central bank voted in favor of it.
2. The reverse repo rate also remained unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the 'Bank Rate' at 4.25 per cent. It was widely expected that MPC would hold rates along with the accommodative stance.
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3. India's Financial year 2021-22 GDP growth projection at 9.5 per cent was also maintained by the RBI and it projects retain inflation at 5.3 per cent for the financial year 2021-22.
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