The twenty fourth meeting of the Monetary Policy Committee (MPC) was held from August 4 to 6, 2020. MPC has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4.0%. In addition, the reverse repo rate under the LAF remains unchanged at 3.35% and the marginal standing facility (MSF) rate and the Bank Rate at 4.25 %.
Furthermore, MPC has also decided to continue with the accommodative stance as long as it is necessary to revive growth and mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward. It has been also clarified that these decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.