Ominous Omicron – RBI maintains rates unchanged, but remains accommodative

Mumbai, Dec 8, 2018 : In an effort to support a sustainable and lasting economic recovery amid concerns about the Omicron virus of the coronavirus Omicron variant, the Reserve Bank of India retained its key lending rates on Wednesday, along with its growth-oriented accommodative position, during the pan-ultimate review of monetary policy FY22The Monetary Policy Committee of Indias central banks voted to keep the repo rate (or short-term lending rate) for commercial banks at 4%.

The reverse repo rate was also maintained at 3.35 percent, while the marginal standing facility rate (MSF) and the Bank rate were unchanged at 4.25 percent.It was widely believed that MPC would maintain rates in line with its accommodative stance.The RBI has also maintained Indias FY22 GDP growth projection of 9.5%.For FY22, the RBI projects inflation to remain at 5.3 percent.rv/skp #Omicron #maintains #rates #unchanged #remains #accommodative #Mumbai #Mumbai #Coronavirus #Review.