RBI Unchanged Repo Rate Unchanged at 4% To Foster Housing Demand

The Reserve Bank of India's (RBI) decision to pause the monetary policy would help foster the housing demand during festival season say experts. Notably, the repo rate has remained unchanged for the eighth time and has continued with an accommodative policy stance for 'as long as necessary to revive and sustain growth on a durable basis'.  The policy decision has been taken to mitigate the impact of COVID-19 on the economy while ensuring inflation remains within the target, RBI Governor Shaktikanta Das said. "The MPC has been given the mandate to maintain annual inflation at 4 per cent until March 31, 2026, with an upper tolerance of 6 per cent and a lower tolerance of 2 per cent," he said. RBI had last revised its policy repo rate, the central bank's lending rate, on May 22, 2020, in an off-policy cycle to perk up the demand by cutting interest rate to a historic low.  The repo rate -- the central bank's lending rate -- remains unchanged at 4 per cent and the reverse repo rate -- borrowing rate -- at 3.35 per cent.