News > RBI Braces for Higher Inflation, Keeps Repo Rate Unchanged

RBI Braces for Higher Inflation, Keeps Repo Rate Unchanged

RBI’s monetary policy committee (MPC) opted to keep the policy repo rate unchanged at 4%. At the same time, the MPC chose to remain accommodative while fixing its attention on soaking up extra liquidity from the economy, in a bid to ensure that inflation is kept in check while economic activity stays on a resilient growth path.

The MPC also kept the Marginal Standing Facility (MSF) – a provision that lets banks borrow from the RBI on an overnight basis – at 4%.