NewDelhi: The EMIs on home and auto loans are unlikely to come down in the near term as the Reserve Bank of India on Monday kept the key policy rates unchanged in its bi-monthly Monetary Policy review.
The central bank announcing the outcome of its RBI bi-monthly Monetary Policy rates on April 7 said that it has decided to keep the repo rate unchanged at 4 percent and the reverse repo rate at 3.35 percent. Repo is the rate at which RBI lends funds to commercial banks when needed. It is a tool that the central bank uses to control inflation. The reverse repo rate is the rate at which the RBI borrows from banks.
The RBI monetary policy committee also decided to continue with its accomodative stance.
This is the second monetary policy announcement after the presentation of the Union Budget 2021-22. The Reserve Bank’s rate-setting Monetary Policy Committee (MPC) began its meeting on Sunday. The six-member MPC headed by RBI Governor Shaktikanta Das has started its deliberations. After the three-day meeting, resolution of the MPC was announced today (April 7).
The MPC kept the key benchmark rate unchanged in its last four reviews.
Bureau Report
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