RBI keeps key rates unchanged

Mumbai, Maintaining accommodative stance, The Reserve Bank of India on Thursday kept key rates unchanged.The Repo rates unaltered at 4 per cent while Reverse Repo rate at 3.35 pc. RBI governor, Shaktikantadas said the decision was to keep the rates unaltered was taken unanimously in the six-member monetary policy committee (MPC).The RBI sees real GDP growth for FY21 as negative, governor Shaktikanta Das said.Global economic activity has remained fragile but global financial market have been buoyant, the RBI governor said.Following COVID- 19 outbreak, the domestic food inflation stays high he said adding that with good monsoon, the agriculture sector prospects have improved. The RBI expects GDP growth rate for this fiscal to remain in the negative zone he said adding that it expects inflation to remain elevated in the near term while softening towards the later part of the year. The RBI has already reduced the repo rate by a total of 115 basis points since February, on top of the 135 basis points in an easing cycle last year. RBI governor Shaktikanta Das said that the 250-basis-point cut in repo rate has resulted in a lowering of the interest rate across the financial system.

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