<h1>RBI's MPC Keeps Repo Rate at 4% to Boost Growth Amid COVID-19; Inflation Concerns Persist Due to Food Prices.</h1> The Monetary Policy Committee (MPC) of the Reserve Bank of India held its 26th meeting from December 2 to 4, 2020. The committee decided to maintain the policy repo rate at 4.0% and continue with an accommodative stance to support economic growth amid the COVID-19 pandemic. The decision aims to revive growth and manage inflation within the target range of 4% +/- 2%. The MPC noted a faster-than-expected economic recovery in India, driven by rural demand and improved manufacturing activity. However, inflation remains a concern due to supply-side disruptions and elevated food prices. The committee unanimously agreed to keep the rates unchanged and support the economy's recovery.