The Reserve Bank of India (RBI) is holding its Monetary Policy Committee (MPC) meeting between August 3 and 5. RBI governor Shaktikanta Das is expected to announce the interest rate revision on Friday. In the last policy announcement on June 8, the RBI announced a repo rate hike of 50 basis points to 4.90 per cent. The repo rate is the rate at which commercial banks borrow short-term funds from the RBI.
Repo rate largely determines the interest given by the banks on the deposits by the customers. It also determines the interest rate charged by the banks on