MPC keep repo rate steady at 4%, stance remains accommodative
The monetary policy committee (MPC) on October 8 kept the key lending rate, the repo rate, unchanged at 4 percent and retained the monetary stance as ‘accommodative’. An accommodative stance refers to the rate setting panel’s willingness to either cut rates or remain on hold. Repo is the rate at which the central bank lends short-term funds to banks.This is the eighth consecutive time the MPC maintaining a status quo in rates. The rate action is on the expected lines as most economists polled by Moneycontrol had predicted a status quo in rates considering the present growth-inflation scenario.