India cenbank keeps rates at record low as virus lashes economy

 India cenbank keeps rates at record low as virus lashes economy

Shaktikanta Das, the Reserve Bank of India (RBI) Governor, attends a news conference in Mumbai, India, December 12, 2018. REUTERS/Danish Siddiqui/File photo

The Reserve Bank of India (RBI) kept interest rates steady at record lows on Friday and reiterated its commitment to keeping policy accommodative as a ferocious second wave of COVID-19 infections threatens to derail the country’s economic recovery.

The RBI held the repo rate (INREPO=ECI), its key lending rate, at 4% and kept the reverse repo rate (INRREP=ECI), the borrowing rate, unchanged at 3.35%.

In a Reuters poll, all 51 economists surveyed had expected the RBI’s monetary policy committee (MPC) to leave rates unchanged. read more

RBI Governor Shaktikanta Das said all six members of the MPC voted in favour of keeping rates on hold and maintaining an accommodative monetary policy stance.

“The MPC was of the view that at this juncture policy support from all sides is required to…

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