RBI holds rates steady as widely expected


The Reserve Bank of India (RBI) left key interest rates unchanged on Friday as widely expected, while retaining an accomodative monetary policy stance to support the coronavirus-hit economy.

The monetary policy committee kept the repo rate, its key lending rate, at 4.0%, while the reverse repo rate or the key borrowing rate stayed at 3.35%. The central bank has slashed the repo rate by 115 basis points (bps) since late March.

The MPC meeting was originally due to conclude on Oct. 1 but had to be rescheduled as the government failed to appoint three new external members to the panel after their terms ended last month.

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