Repo Rate Unchanged at 4%, GDP Growth Projected at 10.5% for FY22

The Reserve Bank of India (RBI) kept the repo rate unchanged at 4 percent. This is the fourth time in a row that the interest rates have been kept unchanged.

Context

The Reserve Bank of India (RBI) kept the repo rate unchanged at 4 percent. This is the fourth time in a row that the interest rates have been kept unchanged.

What is Repo Rate?

• Repo Rate, or repurchase rate, is the key monetary policy rate of interest at which the central bank or the Reserve Bank of India (RBI) lends short term money to banks.
• It helps in to control credit availability, inflation, and the economic growth.
• Repo Rate in India is the primary tool in the RBI’s Monetary and Credit Policy.

Why it has kept unchanged?

• To control inflation
• To boost up economic growth
• To control the liquidity in market