India’s central bank decided to keep its key interest rates unchanged, as expected, at the first policy-setting meeting of the year.
The Monetary Policy Committee of the Reserve Bank of India unanimously voted to maintain the policy repo rate at 4.00 percent. The reverse repo rate was retained at 3.35 percent.
The last change in the benchmark rate was a 40 basis point cut in May 2019, which took the cumulative reduction since February 2019 to 250 basis points.
The Marginal Standing Facility, or MSF rate, and the Bank rate were also left unchanged at 4.25 percent.
Governor Shaktikanta Das said the MPC also unanimously decided to continue with the accommodative monetary policy stance as long as necessary at least to the current financial year and in the next year to revive growth.