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MNI BRIEF: Reserve Bank Of India Surprises And Holds Rates

SINGAPORE (MNI)

The Reserve Bank of India unexpectedly kept its reverse repurchase, or repo, rate at 3.35% and held its benchmark repo rate at 4.0% as expected on Thursday with Governor Shaktikanta Das opening his remarks by saying the pandemic is "holding the world hostage again."

Market players had expected a 20 basis points hike in the reverse repo rate, see: STATE OF PLAY: Reserve Bank Of India To Raise Reverse Repo.

The RBI Monetary Policy Committee however voted to keep rates steady despite higher inflation and a record INR14.95 trillion government borrowing programme planned for the year started April 1.


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