New Delhi: Reserve Bank of India announces new lending policy. No change in repo rate and reverse repo rate. The repo rate is 4% and the reverse repo rate is 3.35%. The announcement comes after a three-day loan review meeting. This is the eighth time that lending rates have remained unchanged. The change in rates was part of a move to stimulate a slower economy in the covid scenario. RBI Governor Shaktikanta Das also blamed inflation. But the economy is on a growth path, he said.
Repo is the interest rate charged by banks on loans taken from the Reserve Bank. The reverse repo is the interest paid by banks on reserves held by the Reserve Bank. The Reserve Bank has also increased the limit for immediate payment service (IMPS) transactions. It is the main reliance system for fund transfer in the country. At present, the limit is Rs 2 lakh. This will be increased to five lakhs.
Inflation is 5.3 percent
The Reserve Bank of India has cut its consumer price index (CPI) inflation to 5.3 percent for the 2022 financial year. The rate was cut to 5.7 percent in August. In the third and fourth quarters, it will be 4.5 percent and 5.8 percent, respectively. CPI inflation for the first quarter of next fiscal is expected to be 5.2 per cent.
