The Reserve Bank of India (RBI) on Friday kept key interest rates unchanged and maintained an accommodative stance in order to aid further economic recovery.

The central bank’s Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 4 per cent while the reverse repo rate has been maintained at 3.35 per cent.

RBI Governor Shaktikanta Das said the MPC will maintain status quo till the economy recovers from the impact of the second wave of the Covid-19 pandemic. But Das clarified that the country is in a much better position and many economic indicators have improved.

“RBI keeps interest rates unchanged at 4 per cent and to continue with the accommodative stance as long as necessary. The action aimed at prioritising growth and addressing distress in economy,” said Governor Das.

“Economy recovering from setback of 2nd wave of Covid-19 and economic activity to pick up on vaccination,” he added. However, the central bank governor said more needs to be done to restore the supply-demand balance in the economy.

Shaktikanta Das said that a good monsoon and improving economic indicators are likely to support economic growth future. The RBI’s announcement is in line with what analysts had predicted earlier.

It may be noted that the RBI has kept key interest rates unchanged for the seventh consecutive time. The growth forecast for FY22 has also been retained at 9.5 per cent.