RBI has been mandated by the Centre to keep inflation in the range of 2-6 per cent.
New Delhi:
Reserve Bank of India (RBI) on Friday kept the repo rate unchanged at 4 per cent for the 11th time in a row. The reverse repo rate has also been kept unchanged at 3.35 per cent. This is the first bi-monthly policy for the current financial year 2022-23.
Repo rate is the rate at which a central bank lends money to banks, and the reverse repo rate is at which it borrows from commercial lenders.
RBI has held the key repo rate at record lows since May 2020 and reiterated time and again that it will remain supportive of economic growth.
The central bank has been mandated by the government to keep inflation in the range of 2-6 per cent.
Retail inflation in February surged to 6.07 per cent, breaching the upper limit of RBI’s target range. RBI mainly factors in the retail inflation while arriving at its bi-monthly monetary policy.
Meanwhile, the domestic indices started on a higher note with the Reserve Bank decision in focus.
