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Covid surge adding to uncertainty, RBI keeps key rate unchanged.

The Reserve Bank of India’s Monetary Policy Committee (MPC) Wednesday left policy rates unchanged at record low levels as it was still unsure about the sustainability of economic recovery due to the second wave of Covid-19 infections.

The central bank, however, announced a bond-buying calendar which will ensure that borrowers reap the benefits of a low interest rate regime.

The repo rate, the main policy rate (it is the rate at which the RBI lends money to commercial banks), has been retained at 4 per cent because the MPC wants to ensure that “the prospects of sustained recovery are well secured”.

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