In its first monetary policy for the financial year 2018-19, the committee has left the interest rates unchanged. This is an indication that the economy's growth is in balance with the increased inflation.
After review, the monetary policy committee left the interest rates unchanged at 6%. The reverse repo rate was retained at 5.75 percent. The decision was as per market expectations given the hardening in global crude oil rates.
The six-member monetary policy committee was headed by Governor Urjit Patel. The 2-day meeting started on Wednesday.
The benchmark index rate was reduced to 6% by 0.25 percentage points in August last year, bringing it to a 6 year low.
Repo rate is the rate at which RBI lends money to banks.
The government also announced that its market borrowing will be Rs 2.88 lakh crores in the period of April-September of 2018-19, compared to Rs 3.72 lakh crores borrowed in the last fiscal for the same period.