The monetary policy committee (MPC) voted unanimously to keep the repo rate unchanged, stated RBI Governor Shaktikanta Das. He stated the regulator will maintain an accommodative stance. This stance will continue as long as necessary to mitigate the impact of the COVID-19 pandemic.
With the status quo, RBI is looking at supporting growth, and keep inflation at targeted level, he added.
The policy repo rate or the short-term lending rate is currently at 4 per cent, and the reverse repo rate is 3.35 per cent. RBI maintains status quo fifth time in a row on policy rate.
Economic activity is improvising in spite of surge in infections, Das added. Das stressed urban demand has seen a surge and vaccination will help improve it further. He added focus must be on containing spread of virus and economic recovery.