The newly-constituted Monetary Policy Committee (MPC) of the Reserve Bank on Friday announced that the repo rate would be left unchanged. The three-member MPC voted on the decision after three-day deliberations.

The reverse repo rate will also continue to earn 3.35% for banks for their deposits kept with RBI.

Maintaining status quo for the second time in a row, Reserve Bank of India on Friday maintained an accommodative stance, implying more rate cuts in the future if the need arises to support the economy hit by the COVID-19 crisis.

Addressing a press conference on Friday, RBI Governor Shaktikanta Das said, that the Indian economy is entering a decisive phase in fight against coronavirus.

Also read: Understanding repo and reverse repo rates as RBI announces monetary policy

RBI had last revised its policy rate on May 22, in an off-policy cycle to perk up demand by cutting interest rate to a historic low.

The government has appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shashanka Bhide as members of the MPC.

The new members replace Chetan Ghate, Pami Dua, and Ravindra Dholakia. They were appointed on the panel for four years on September 29, 2016. As per the RBI Act, the external members can hold office for a period of four years and are not eligible for re-appointment.