RBI keeps interest rates unchanged

The Reserve Bank of India, in its monetary policy announcement on June 4, kept the interest rates unchanged. While the repo rate remains at 4 per cent, the reverse repo rate has been kept unchanged at 3.35 per cent.

Experts had earlier predicted that the RBI is likely to keep the policy rates unchanged and maintain accommodative stance amid the growing uncertainty over COVID-19 pandemic.
The fears of firming inflation also restrained the RBI MPC from tinkering with the interest rates. “The MPC was of the view that at this juncture, policy support from all sides is required to regain the momentum of growth that was evident in H2 2020-21 and to nurture the recovery after it has taken root,” said RBI Governor Shaktikanta Das while announcing the decisions.