RTTNews | Aug 6, 2021 01:25AM EDT

01:25 Friday, August 6, 2021 (RTTNews.com) - India's central bank left its key interest rates unchanged on Friday and vowed to continue its accommodative stance as long as necessary.

The Monetary Policy Committee of the Reserve Bank of India unanimously voted to hold the benchmark policy rate at 4.00 percent. The reverse repo rate was retained at 3.35 percent.

The Marginal Standing Facility rate and the Bank Rate were also left unchanged at 4.25 percent at the meeting.

The MPC also decided on a 5 to 1 majority to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target, going forward.

Governor Shaktikanta Das said the Reserve Bank remains in "whatever it takes" mode, with a readiness to deploy all its policy levers - monetary, prudential or regulatory.

The bank has raised its inflation forecast for 2021-22 to 5.7 percent from 5.1 percent. The growth outlook for 2021-22 was maintained at 9.5 percent.

Given the nascent and fragile economic recovery, the RBI decided to extend the on-tap targeted long-term repo operations scheme further by a period of three months.

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