Ominous Omicron: RBI keeps rates intact, remains accommodative

To support a durable as well as lasting economic recovery amid concerns over the Omicron variant of the coronavirus, the Reserve Bank of India on Wednesday retained its key lending rates along with the growth-oriented accommodative stance during the pan-ultimate monetary policy review of FY22.

The Monetary Policy Committee (MPC) of India's central bank voted to maintain the repo rate, or short-term lending rate, for commercial banks at 4 per cent.

Likewise, the reverse repo rate was kept unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the 'Bank Rate' at 4.25 per cent.

It was widely expected that MPC would hold rates along with the accommodative stance.

The RBI has also retained India's FY22 GDP growth projection at 9.5 per cent. The RBI projects retain inflation at 5.3 per cent for FY22. -IANS