Resolution of the Monetary Policy Committee (MPC) 2021

The Monetary Policy Committee (MPC) at its meeting recently decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0 per cent on the basis of an assessment of the current and evolving macroeconomic situation

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Consequently, the reverse repo rate under the LAF remains unchanged at 3.35 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 4.25 per cent.

The MPC also decided to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth.