RBI keeps repo rate unchanged at 4%

NEW DELHI: The Reserve Bank of India (RBI) on Wednesday decided to keep key lending rates unchanged for the fifth consecutive time in its April policy review meeting.
The six-member monetary policy committee (MPC), headed by governor Shaktikanta Das, retained repo rate at 4 per cent and reverse repo rate at 3.35 per cent, while maintaining accommodative stance.
Repo rate is the rate at which the RBI lends to banks, while reverse repo rate is the rate at which it borrows from banks.
The Reserve Bank mainly factors in the retail inflation while arriving at its bi-monthly monetary policy.
Last month, the government had asked the central bank to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side for another five-year period ending March 2026.
The annual retail inflation rate rose to 5.03 per cent in February, a three-month high due to the rise in fuel prices.
The MPC has kept the key benchmark rate unchanged since the last four reviews now. It had last revised its policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
The central bank has cut policy rates by 115 basis points since February last year.

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