The Monetary Policy Committee (MPC) of the Reserve Bank of India on Wednesday kept key policy rates unchanged for the ninth time in a row
· The bank has kept the repo rate — the cost at that the Reserve Bank of India lends funds to banks — unchanged at four per cent and also the reverse repo rate — the cost at that Reserve Bank of India borrows from banks — at 3.35 per cent.
· The bank rate — the cost at that Reserve Bank of India lends short-run funds to banks sans security — additionally remains unchanged at 4.25 per cent.
· The unchanged repo rates can facilitate maintain the status quo on the prevailing low rate of interest regime for a few more time.
· This works well for borrowers because the environment of affordability can continue.