Repo rate unchanged eighth time in a row

The Reserve Bank of India‘s monetary policy committee (MPC) on October 8 kept the key lending rate (repo rate) unchanged at 4 per cent for the eighth time in a row. The reverse repo rate was kept unchanged at 3.5 per cent.

The MPC voted 5-1 to retain the accommodative stance as long as necessary to sustain growth on a durable basis, while ensuring that inflation remains within the target, RBI Governor Shaktikanta Das said while announcing the decision.

The central bank retained the FY22 GDP growth forecast at 9.5 per cent. CPI inflation for the current fiscal was projected at 5.3 per cent.

The RBI announcement comes against the backdrop of COVID-19 infections receding in recent days and the economy stablising.