RBI retains repo rate unchanged at 6.25%
FY17 Gross Value Added has seen at 6.9% and FY18 GVA has seen at 7.4% with rick evenly balanced.
The Reserve Bank of India has retained the repo rate unchanged at 6.25% in its sixth bimonthly monetary policy review on Wednesday.
The RBI said all the six members of the monetary policy committee voted in favour of the decision citing the inflation concerns after the first quarter of the next financial year.
“Favourable base effects and lagged effects of demand compression may mute headline inflation in Q1 of 2017-18,” the Hindu quoted the statement of the central bank.
“Thereafter, it is expected to pick up momentum, especially as growth picks up and the output gap narrows. Moreover, base effects will reverse and turn adverse during Q3 and Q4 of 2017-18,” the RBI added.
FY17 Gross Value Added has seen at 6.9% FY18 GVA has seen at 7.4%. While the Consumer Price Index has seen below 5%. Consequently, the reverse repo rate under the LAF remains unchanged at 5.75%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.
Repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds.