Mumbai: The Reserve Bank of India (RBI) on Friday kept the benchmark interest rate unchanged at 4 per cent and decided to continue its accommodative stance despite rising inflation. This is the 11th time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained the status quo. The RBI last revised its policy repo rate or short-term lending rate on May 22, 2020, to meet demand by reducing the interest rate to a historic low in an off-policy cycle. Announcing the bi-monthly monetary policy review, Das said the MPC has decided to keep the benchmark repo rate at 4 per cent. Consequently, the reverse repo rate will continue to earn 3.35 per cent interest for banks for deposits placed with the RBI. This is the first MPC meeting of the current financial year.
“Fucked in multiple adversities, our approach needs to be cautious but proactive to minimize the adverse impact on India’s growth, inflation and financial conditions. While the pandemic quickly turned from a health crisis to a life and livelihood, struggle. Europe has the potential to derail the global economy. Now, two years after we exit the pandemic situation, the global economy has seen sanctions and increasingly tectonic changes, with the start of the war in Europe on 24 February. geopolitical tensions,” RBI governor said adding that inflation is expected to rise to 5.7 pc for FY23 from 4.5 pc projected earlier.