Repo Rate to remain same 4% – RBI’s Governor, Shaktikanta Das said recently

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RBI (Reserve Bank of India) sets different rates for the economy according to the growth expected for the country, and the repo rate is one of those rates. The Repo rate is the rate at which the RBI provides funds to commercial banks and also it is used to control inflation of the country.

This year’s repo rate was set at 4% by the Monetary Policy Committee of the Reserve Bank of India. And after the recent meeting, this repo rate as announced by RBI Governor Shaktikanta Das will remain the same. RBI Governor Shaktikanta Das announced that this year’s repo rate is to remain the same at 4% and the reason behind this is that the Monetary Policy Committee has voted to keep it the same and unchanged. RBI’s governor also added this repo rate is expected to support the economy of the country.

According to RBI’s governor, this year India is going to have a decline in GDP by 9.5% and the reason behind this decline is as we all know is this Covid-19 pandemic. And according to him as we saw the first quarter that was very low in terms of GDP, but he said that further there are some expectations that it can see growth by the fourth quarter.

“Unobtrusive recuperation in the principal half of the year could additionally reinforce in second half… monetary action to pick up a foothold in the second from last quarter,” RBI’s governer, Das said.

The six-part MPC met for the current week following the acceptance of three new autonomous individuals, Shashanka Bhide, Ashima Goyal, and Jayanth R Varma.

The RBI had to defer the every other month meeting of the MPC booked for September 29, 30, and October 1 as the administration neglected to name its three individuals to the six-part board. MPC is the legal council that fixes the key arrangement loan fee and financial strategy position of the nation just as the expansion target. The residency of the three individuals named by the administration in 2016 lapsed after the past arrangement on August 6, when the repo rate was kept consistent at 4 percent.