Mumbai, Dec 08 Falling on the expected lines, the Reserve Bank of India kept its repurchase (repo) rate unchanged at 4 per cent in its bimonthly review of the annual monetary policy this morning.

Most of the experts had predicted that the RBI would maintain status quo on the key policy rates. The RBI's decision to maintain accommodative stance on the key policy rates was revealed by the RBI governor, Shaktikanta Das on conclusion of three-day marathon monetary policy committee meeting today.

Today's policy review maintained a complete status quo on the repo and reverse repo rates and the monetary policy stance, in line with our expectations, necessitated by the renewed uncertainty fuelled by the Omicron variant.

Commenting on it, Aditi Nayar, chief economist, ICRA credit rating, said, "While a subtle shift has been brought in with the comment that price stability remains the cardinal principle of monetary policy, the overarching tone of today's statement and forward guidance is less hawkish than what we had anticipated."

The comment on managing a durable, strong, as well as inclusive recovery, underscores concern of a K-shaped trend underpinning the traction in economic growth.

With the MPC remarking that the ongoing domestic recovery needs sustained policy support to make it more broad-based, we now foresee a slightly lower likelihood of our base case assessment that the stance will be changed to neutral in the February policy review, she added.

Ramani Sastri - Chairman & MD, Sterling Developers, said that the RBI's decision on keeping the repo rate unchanged will certainly bode well for all interest-sensitive sectors ahead of the New Year when the economy is on its road to recovery. For home buyers, this decision will help reinstate confidence and further access to affordable home loans and help foster housing demand.