RBI keeps the Repo Rates Unchanged

RBI keeps the Repo Rates Unchanged

Subject – Economy

Context – The Monetary Policy Committee (MPC) of the Reserve Bank of India on Wednesday kept key policy rates unchanged for the ninth time in a row

Concept –

• The bank has kept the repo rate — the rate at which the RBI lends funds to banks — unchanged at four per cent and the reverse repo rate — the rate at which RBI borrows from banks — at 3.35 per cent.
• The bank rate — the rate at which RBI lends short-term funds to banks sans security — also remains unchanged at 4.25 per cent.
• The unchanged repo rates will help maintain the status quo on the prevailing low interest rate regime for some more time.
• This works well for borrowers as the environment of affordability will continue.