RBI keeps rates at record low as virus lashes economy
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MUMBAI - The Reserve Bank of India (RBI) kept interest rates steady at record lows on Friday, as widely predicted, as it assesses the impact of a devastating second wave of COVID-19 infections on the economy.
The RBI held the repo rate, its key lending rate, at 4% and kept the reverse repo rate, the borrowing rate, unchanged at 3.35%.
In a Reuters poll, all 51 economists surveyed had expected the RBI's monetary policy committee (MPC) to leave rates unchanged.
Traders are awaiting details on the central bank's liquidity stance and a potential bond buying programme announcement.
The RBI has slashed the repo rate by a total of 115 basis points (bps) since March 2020 to soften the blow from the pandemic. This follows 135 bps worth of rate cuts since the beginning of 2019.
(Reporting by Swati Bhat; Editing by Ana Nicolaci da Costa)
