The Reserve Bank of India (RBI) through a notification dated 04.06.2021 informs the decision of the Monetary Policy Committee (MPC) regarding the policy repo rate under the Liquidity Adjustment Facility (LAF). The Committee decided to keep it unchanged at 4%. The notification also states that the reverse repo rate is unchanged at 3.35% and that the
Marginal Standing Facility (MSF) rate and the Bank Rate is 4.25%.
The MPC decided to continue with the accommodative stance owing to the Covid-19 pandemic. These decisions are in agreement with the objective of achieving the medium target for Consumer Price Index (CPI) inflation of 4% within a band of +/-2% while supporting growth.
