Good news for FD investors as RBI keeps repo rate unchanged2 min read . Updated: 04 Dec 2020, 11:06 AM IST
- RBI keeps benchmark lending rate unchanged at 4%
- No change in policy rates means good news for fixed deposit (FD) investors as banks may not cut interest rates on FDs any further
The Reserve Bank of India (RBI), in its bi-monthly monetary meet today, has decided to keep the repo rate unchanged. This is the third time in a row the central bank has kept the key rates unchanged. The status quo on monetary policy was as expected by most economists, amid high levels of inflation. “RBI policy was on expected lines. They have prioritised growth over inflation. This is an acknowledgment that inflation drivers seem to be more supply side led. An accommodative liquidity stance will ensure access to liquidity will not be a challenge and the ongoing recovery continues to gather steam. This will help push through govt borrowings in a year where the revenues are under pressure. Guidance is better than earlier on growth and flows. Positive for markets," Ashish Shanker, Deputy MD and Head of Investment, Motilal Oswal Private Wealth Management said.