RBI MPC meeting: A prolonged rate pause and liquidity withdrawal, with a rate cut only in the second half of FY 25 experts, bankers and economists share their thoughts
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Mumbai, February 5
The Reserve Bank of India (RBI) on Friday kept interest rates on hold for the fourth time in a row but vowed to support growth as long it is needed even as it began withdrawing some pandemic-era policies.
While the Union Budget 2021 earlier this week laid out an expansive fiscal strategy over the medium term to strengthen the growth engine in the economy, the RBI affirmed its support to such a plan through appropriate monetary tools.
The six-member Monetary Policy Committee (MPC) kept the repurchase or repo rate unchanged at 4 per cent, said Governor Shaktikanta Das.
Consequently, the reverse repo rate will continue to earn 3.35 per cent for banks for their deposits kept with the RBI.