RBI REPO RATE
- December 7, 2020
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Subject: Economics
Context: The Reserve Bank of India (RBI), in its bi-monthly monetary, has decided to keep the repo rate unchanged.
Concept :
- This is the third time in a row the central bank has kept the key rates unchanged. The status quo on monetary policy was as expected by most economists, amid high levels of inflation.
- RBI policy have prioritised growth over inflation. This is an acknowledgment that inflation drivers seem to be more supply side led.
- An accommodative liquidity stance will ensure access to liquidity will not be a challenge and the ongoing recovery continues to gather steam. This will help push through govt borrowings in a year where the revenues are under pressure.