The accommodative stance resolution was passed by the six-member panel with five members favoring the resolution and one member expressing reservations.
In his address after the MPC meet, Governor of Reserve Bank of India (RBI) Shaktikanta Das said the tightening of global financial conditions poses risks to global economic activity and to India's prospects as well.
Against this backdrop, the MPC decided that the ongoing domestic recovery needs sustained policy support to make it more broad-based.
"Considering it appropriate to wait for growth signals to become solidly entrenched while remaining watchful on inflation dynamics, the MPC decided to keep the policy repo rate unchanged at 4 percent and to continue with an accommodative stance as long as necessary to revive and sustain growth on a durable basis," the governor said.
Surges of infections across geographies, emergence of the Omicron variant, the persistence of supply chain disruptions and elevated energy and commodity prices continue to weigh on global economic activity, Das said.
"Global merchandise trade is slowing after a sharp rebound from the pandemic due to the disruptions in port services and turnaround time, elevated freight rates and the global shortage of semiconductor chips, which could dampen future manufacturing output and trade," the governor said.
While the projection for real GDP (gross domestic product) growth is maintained at 9.5 percent for 2021-22 (April-March), RBI has revised its October-December 2021 GDP growth to 6.6 percent from earlier 6.8 percent, and cut January-March 2022 GDP to 6 percent from 6.1 percent.
The next meeting of the MPC is scheduled during Feb. 7-9 next year.
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