Bench mark interest rate
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Subject:Economy
Context:
The Reserve Bank of India has kept the interest rates unchanged seeking to contain a rise in retail inflation even as growth remains a concern.
Concept:
- The repo rate (the interest rate at which the RBI provides liquidity to banks to overcome short-term mismatches), thus, continues to remain at 4 per cent.
- This rate has been cut twice by a cumulative 115 basis points since March in view of the deteriorating growth outlook for the economy.
