RBI keeps repo rate unchanged in 1st monetary policy of new financial year

In the first monetary policy of the new financial year, the RBI has kept the repo rate unchanged.

“Now, two years later as we were emerging out of the pandemic situation, the global economy has seen tectonic shifts beginning February 24 with the commencement of the war in Europe, followed by sanctions and escalating geopolitical tensions,” RBI governor Shaktikanta Das said in an address on Friday morning.

While the repo rate remains unchanged at 4 per cent, the reverse repo rate has been changed to 3.75 per cent.

“The Monetary Policy Committee voted unanimously to leave the repo rate unchanged at 4 percent. The MPC also voted unanimously to keep stance accommodative. Reverse repo rate is hiked to ensure liquidity. The MSF rate and the bank rate remain unchanged at 4.25 per cent,” the RBI governor said on Friday in a video address.

The central bank “has successfuly navigated its course through turbulent waters,” he underlined. “With the commencement of the war in Europe, we are confronted with new and humoungous challenges. The conflict in Europe has the potential to derail the global economy,” he insisted.