Digital Desk, New Delhi. Reserve Bank of India (RBI) Governor Shaktikanta Das has announced a review of the credit policy on Friday. According to which the RBI has not made any change in interest rates this time. This directly means that the repo rate will still remain at 4 per cent and the reverse repo rate at 3.35 per cent.
Announcing the decisions taken in the meeting of RBI monetary policy committee i.e. MPC, Das said that the country’s economic growth prospects have improved significantly and inflation has come down to 6 per cent.
Address by Shri Shaktikanta Das, Governor, Reserve Bank of India https://t.co/Yr2FmWVd30
– ReserveBankOfIndia (@RBI) February 5, 2021
He said inflation has returned below the 4 per cent band. The RBI governor has projected the country’s economic growth rate i.e. GDP growth to be 10.5 percent in 2021.22.
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He said that our strength was tested in 2020 and a new economic era is being created in 2021. RBI Governor Shaktikanta Das told in a press conference that between January and March inflation could be as high as 5.2 per cent.
Explain that the repo rate is the rate at which banks borrow from the Reserve Bank of India. The rate at which banks pay interest to RBI on this loan is called repo rate.