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of <h1>RBI Holds Key Interest Rate at 4% for 7th Time, Maintains Accommodative Stance to Support Growth Amid COVID-19.</h1> The Reserve Bank of India (RBI) has maintained the key interest rate at 4% for the seventh consecutive time, with the reverse repo rate at 3.35% and the bank rate at 4.25%. The RBI continues its accommodative stance to support growth amid the COVID-19 pandemic. Retail inflation is projected at 5.7% for 2021-22, potentially decreasing to 5.1% in the next fiscal year. The GDP growth projection for 2021-22 remains at 9.5%. The RBI plans two more auctions under G-SAP 2.0 and notes eased domestic borrowing costs, particularly benefiting MSMEs, housing, and large industries. Additional liquidity measures were announced. The next Monetary Policy Committee meeting is set for October 6-8.
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