<h1>RBI's MPC Decides to Keep Repo Rate at 4.0% to Support Economic Growth Amid Pandemic, Inflation Concerns Persist.</h1> The Monetary Policy Committee (MPC) of the Reserve Bank of India held its 25th meeting from October 7 to 9, 2020, deciding to maintain the policy repo rate at 4.0% and the reverse repo rate at 3.35%. The MPC resolved to continue an accommodative stance to support economic growth amid the COVID-19 pandemic, while keeping inflation within the target range. The committee noted a recovery in global economic activity but highlighted downside risks due to rising infections. Domestically, economic activity showed signs of stabilization, though GDP contracted significantly in Q1:2020-21. Inflation remained above target due to supply disruptions, but is expected to moderate. The MPC emphasized the importance of reviving growth and maintaining financial stability.