Mumbai: To subdue unabatedly high inflation rate, the Reserve Bank of India (RBI) maintained the key lending rates.
Accordingly, the Monetary Policy Committee (MPC) of the central bank maintained the repo rate — or short-term lending rate for commercial banks, at 4 per cent.
The MPC voted to maintain accommodative stance, thus opening up possibilities for more future rate cuts.
It was broadly expected that the RBI’s MPC will hold rates as recent data showed that retail inflation has been at an elevated level during October.
However, RBI Governor Shaktikanta Das, in his address pointed out that the Apex bank expects inflation to decelerate.
According to Das, India’s economy is expected to witness a Real GDP growth of (-) 7.5 per cent in FY21.
He pointed out that the economy has witnessed a faster than anticipated recovery.
He cited that several high-frequency indicators have pointed to growth in both rural and urban areas.
