RBI Holds Repo Rate Steady; Cuts Reverse Repo Rates

Posted By:
Subscribe to GoodReturns
For Quick Alerts
Subscribe Now  
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    The Reserve Bank of India (RBI) today left repo rates unchanged, as was largely expected, but, increased the reverse repo rate to 6 per cent from 5.75 per cent. While the repo rate is the rate at which the RBI lends money to banks, the reverse repo is the opposite, where banks lend money to the RBI. Stock markets, which were largely expecting a status quo in line with what was announced saw very little fluctuations.

    RBI Holds Repo Rate Steady; Cuts Reverse Repo Rates
    It was largely expected that the repo rate would be kept unchanged. The Monetary Policy Committee which met here today, unanimously kept the rates unchanged.

    "Risks are evenly balanced around the inflation trajectory at the current juncture. There are upside risks to the baseline projection. The main one stems from the uncertainty surrounding the outcome of the south west monsoon in view of the rising probability of an El Niño event around July-August, and its implications for food inflation," the RBI said in a statement. 

    "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 per cent within a band of +/- 2 per cent, while supporting growth," the release further added.

    The present decision by the RBI may not alter lending and borrowing rates and hence loans and deposit rates would hold steady.

    Read more about: rbi repo
    Story first published: Thursday, April 6, 2017, 15:00 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    Get Latest News alerts from Goodreturns

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more