The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 4 per cent, Governor Shaktikanta Das announced on 6th August 2020.
“An accommodative stance of the monetary policy will continue as long as necessary to revive growth and mitigate the impact of the pandemic while ensuring that inflation remains within target going forward. RBI is perhaps the only central bank in the world which has set up a special quarantine facility for continuity of critical operations,” he told reporters.
The central bank also allowed lenders to restructure corporate and MSME loans as well as raised the limit of loans that can be availed against gold ornaments and jewellery.
Meanwhile, the markets are in the green in anticipation of the announcement from RBI. The BSE is currently 250 points up while the NSE is up by 66 points.