The Reverse Repo Rate is a key monetary policy tool used by the Reserve Bank of India (RBI) to manage liquidity within the banking system. It represents the interest rate at which commercial banks can park their excess funds with the central bank on an overnight basis. By adjusting this rate, the RBI can effectively control the money supply; a higher rate incentivizes banks to deposit more funds with the central bank, thereby reducing the liquidity available for lending in the economy. This indicator is vital for maintaining price stability and managing inflationary pressures in India.
The rate is determined by the Monetary Policy Committee (MPC) of the Reserve Bank of India during its bi-monthly review meetings. It is typically set at a fixed spread below the Repo Rate, which is the primary policy rate used to signal the stance of monetary policy.
| Date | Actual | Forecast | Surprise |
|---|---|---|---|
| Feb 10, 2022 | 3.35 | 3.55 | -0.20 |
| Dec 8, 2021 | 3.35 | 3.35 | 0.00 |
| Oct 8, 2021 | 3.35 | 3.35 | 0.00 |
| Aug 6, 2021 | 3.35 | 3.35 | 0.00 |
| Jun 4, 2021 | 3.35 | 3.35 | 0.00 |
| Apr 7, 2021 | 3.35 | 3.35 | 0.00 |
| Feb 5, 2021 | 3.35 | 3.35 | 0.00 |
| Dec 4, 2020 | 3.35 | 3.35 | 0.00 |
| May 22, 2020 | 3.35 | — | — |
| Apr 17, 2020 | 3.75 | — | — |
