New Delhi, Feb 4: The Reserve Bank of India’s Monetary Policy Committee today voted unanimously to keep policy rate unchanged at 4%. In its first post-budget meet, the MPC decided to maintain status quo.
RBI Governor Shaktikanta Das said that the normalisation is pickup pace in India as fears of a second wave of the coronavirus abate. The move gains significance this time as earlier this week the central government unveiled its massive borrowing plan.
Most economists had expect the MPC to continue holding the repurchase rate at 4%. The 10-year bond yield has gone up from 5.93% a day ahead of the Union Budget to 6.08% yesterday.
The MPC cut interest rates by 115 basis points last year to maintain liquidity in the financial system but has maintained the status quo for the last three meetings.