RBI keeps key rates unchanged in 6th bi-monthly monetary policy review
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) headed by RBI Governor Urjit Patel has kept the key policy rates unchanged.
It was central bank’s sixth bi-monthly and last policy for the financial year 2016-17 and overall the third by the MPC. All six members of the MPC voted in favour of holding rates.
Besides, RBI also changed its stance from accommodative to neutral. It also lowered GDP growth forecast for the current fiscal to 6.9%. However the apex bank expects a rebound in GDP growth to 7.4% in 2017-18.
- Repo rate under the liquidity adjustment facility (LAF): Unchanged at 6.25 percent.
- Reverse repo rate under the LAF: Unchanged at 5.75 per cent.
- Marginal standing facility (MSF): Unchanged at 6.75 per cent.
- Bank Rate: Unchanged at 6.75 per cent.
- Reserve Ratios Cash Reserve Ratio (CRR) of scheduled banks: Unchanged at 4.0 per cent of net demand and time liability (NDTL).
- Statutory Liquidity Ratio (SLR): Unchanged 20.50 per cent.