RBI maintains status quo for 8th time; retains repo rate at 4%
Mumbai(PTI): The Reserve Bank of India (RBI) on Friday decided to keep benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance even as the economy is showing signs of recovery after the second COVID wave.
This is the eighth time in a row that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das has maintained status quo.
RBI had last revised its policy repo rate or the short-term lending rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.
MPC decided to keep benchmark repurchase (repo) rate at 4 per cent, Das said while announcing the bi-monthly monetary policy review.
Consequently, the reverse repo rate will also continue to earn 3.35 per cent for banks for their deposits kept with RBI.
Das said MPC voted unanimously for keeping interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.
Amidst rising fuel prices, the retail inflation stood at 5.3 per cent in August.
MPC has been given the mandate to maintain annual inflation at 4 per cent until March 31, 2026, with an upper tolerance of 6 per cent and a lower tolerance of 2 per cent.
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Vijay unable to prove majority, not invited for CM oath ceremony: Sources
Chennai: Actor-politician Vijay has reportedly not been invited to take oath as Chief Minister of Tamil Nadu after failing to demonstrate support from the required number of MLAs, sources in Raj Bhavan said.
According to media reports that quoted sources in the office of R.N. Ravi Arlekar, Vijay could not prove the backing of 118 legislators, the majority mark in the 234-member Tamil Nadu Assembly.
Despite last-minute efforts to secure support from the Viduthalai Chiruthaigal Katchi (VCK), Amma Makkal Munnetra Kazagam (AMMK), and an IUML legislator, Vijay reportedly managed support from only 116 MLAs, falling short by two members.
Sources said Vijay failed to submit letters of support from the VCK and the Indian Union Muslim League (IUML).
Later, the IUML issued a statement clarifying that it was not part of the TVK-led alliance.
Meanwhile, AMMK leader T.T.V. Dhinakaran is also said to have informed the Governor that his party would support the All India Anna Dravida Munnetra Kazhagam (AIADMK) instead.
Earlier in the evening, Vijay had met Governor Arlekar and staked claim to form the government, stating that he enjoyed the support of 118 MLAs.
