Repo Rate kept unchanged at 4% by MPC
New Delhi: The Reserve Bank of India has kept the Repo Rate unchanged at 4 percent. The Monetary Policy Committee (MPC) has unanimously voted to keep the policy Repo Rate at the present level of 4 percent in its meeting held today.
“The MPC also decided to continue to have accommodative policy stance till as long as required this year and next year", said RBI Governor Shaktikanta Das.
He also said that post the sharp fall in the global economy in the second quarter of this year, there's an uptick in business activities in the third quarter. However, the uptick is not even, he added.
He said that the Indian economy is entering a decisive phase in the battle against corona virus and the indications are that the deep contractions in the first quarter are over. “Silver Lining are among us. The focus must now shift from containment to revival. Undeterred by the pandemic, the rural economy has been resilient,” said Das after the meeting of the MPC.
However, he made certain changes to the existing norms for the home loans.
"In recognition of the role of the realty industry in generating employment and economic activity, it has been decided to rationalise the risk weights and link them to LTV ratios only for all new housing loans sanctioned up to March 31, 2022," Das said.
This will help the real estate sector, he said.
This decision is expected to make more credit available to home buyers who are looking to take home loans.