Inflationary Pangs: RBI holds key lending rates, remains accommodative

MUMBAI : To keep retail inflation in check, the Reserve Bank of India on Thursday kept key lending rates unchanged. Accordingly, the RB...

MUMBAI : To keep retail inflation in check, the Reserve Bank of India on Thursday kept key lending rates unchanged.

Accordingly, the RBI's monetary policy committee (MPC) in its fifth review of the current fiscal kept the repo, or short term lending rate for commercial banks at 5.15 per cent.

Consequently, the reverse repo rate was maintained at 4.90 per cent, and the marginal standing facility (MSF) rate and the bank rate remained at 5.40 per cent.

However, the Reserve Bank's Monetary Policy Committee continued its accommodative stance.

"The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target," the Fifth Bi-monthly Monetary Policy Statement, 2019-20 said.

"These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth."

-Source: News Agency