Mumbai: The Reserve Bank of India (RBI) on Friday decided to keep key lending rates unchanged in its last bi-monthly policy review meeting.
The RBI today kept rates steady at record low levels as widely expected and reiterated that it will continue to support the recovering economy by ensuring ample rupee liquidity in the banking system.
While, it projected a gross domestic product (GDP) growth rate of 10.5 per cent for the financial year 2021-22, on the back of recovery in economic activities.
The six-member monetary policy committee (MPC), headed by governor Shaktikanta Das, kept repo rate unchanged at 4 per cent, while maintaining accommodative stance.
Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks.
Repo rate is the rate at which the RBI lends to banks, while reverse repo rate is the rate at which it borrows from banks.
This was the first MPC meeting after the presentation of the Union Budget 2021-22.