Monetary Policy Updates : RBI Keeps Repo Rate Unchanged

The Reserve Bank of India left repo rate unchanged at 6.25 percent but hiked reverse repo rate to 6 percent.
RBI governor Urjit Patel says MPC decided unanimously to keep rates unchanged. 

Reverse Repo hiked from 5.75 percent to 6 percent. Bankers said this could confuse markets in the short run.

The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/- 2 percent, while supporting growth.


GVA growth is projected to strengthen to 7.4 percent in 2017-18 from 6.7 percent in 2016-17, with risks evenly balanced. Banks have reduced lending rates, although further scope for a more complete transmission of policy impulses remains, including for small savings/administered rates.
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