The Reserve Bank of India (RBI) on Friday kept the key repo rate unchanged at 4 per cent in view of rising inflation and faint signs of economic growth amid gradual lifting of coronavirus (COVID-19) countrywide lockdown. It also kept the reverse repo rate unchanged at 3.35 per cent. Repo is the rate at which RBI lends funds to commercial banks when needed. It is a tool that the central bank uses to control inflation. The headline inflation is close to 6.7 per cent level amid supply disruptions, beyond the comfort level of the central bank.

Source: dna October 08, 2020 22:52 UTC