RBI Says More Rate Cuts In Future If Need Arises, Repo Rate Unchanged

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MUMBAI: Governor Shaktikanta Das on Thursday said that the Reserve Bank of India (RBI) opted for a status quo and has left interest rates unchanged.

The RBI has maintained an accommodative stance, implying more rate cuts in future if the need arises to support the economy hit by the COVID-19 crisis, Das said while announcing the decisions taken by the central bank's Monetary Policy Committee (MPC).

The benchmark repurchase (repo) rate has been left unchanged at 4 per cent. Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their parked deposits kept with the RBI.

He said the MPC voted for keeping interest rate unchanged and continued with its accommodative stance to support growth.

RBI had last revised its policy rate on May 22, in an off-policy cycle to perk up demand by cutting interest rate to historic low.

Meanwhile, domestic equity benchmark Sensex rallied over 500 points in afternoon session on Thursday. In the afternoon, the BSE Sensex was trading 530.90 points or 1.41 per cent higher at 38,194.23 points while the NSE Nifty surged 124.90 points or 1.13 per cent to 11,226.55 points.

Tata Steel was the top gainer in the 30-share Sensex pack, rising around 2 per cent, followed by HDFC Bank, Bajaj Finance, HCL Tech, Infosys, Kotak Bank, TCS and Reliance Industries. M&M, Maruti, Bajaj Auto and Bharti Airtel were among the laggards.

Rupee was trading 6 paise higher against the US dollar at 74.87 in the afternoon.

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