RBI holds rates steady as widely expected

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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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