The RBI in its monetary policy decision today has kept repo rate unchanged at 4% taking heed of conflicting growth- inflation data points. Accomodative stance continues.
Also at the same time, the apex bank has kept reverse repo rate unchanged.
Since the pandemic struck the Indian economy in March, the apex bank has slashed repo rate, the rate at which RBI lends money to commercial banks to 4%, a steep cut by 115 bps. While reverse repo rate has been brought down by 155 bps. 1 bps is one-hundredth of a percentage point.