The Reserve Bank of India, while announcing the new monetary policy on Friday, has not made any change in the repo rate.
RBI has retained the repo rate of four percent. At the same time, there has also been no change in the reverse repo rate. The reverse repo rate will remain at 3.35 percent.
Repo rate is the rate at which RBI lends to banks.
At the same time, when banks deposit the amount they have with the RBI, then the RBI pays them interest on that amount. This rate of interest is called the reverse report rate.
RBI announced new monetary policy
Estimates of 9.5% fall in GDP
This decision has been taken in the monetary policy review headed by RBI Governor Shaktikanta Das.
Giving information about the new monetary policy, the Reserve Bank has also predicted a decline in gross domestic product (GDP) for the year 2021.
According to the Reserve Bank, GDP is projected to fall to 9.5 percent for the year 2021.
While giving this information, RBI also said that inflation will continue to increase in September, but it is likely to decrease gradually in the third and fourth phases.
According to the Reserve Bank, the economy is expected to boom. Reforms are taking place after the fall of April-June.