• search
For Mumbai Updates
Allow Notification  

RBI keeps repo rate at 6 per cent, reverse repo rate at 5.75 per cent

By Chennabasaveshwar

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.0 percent.

RBI keeps repo rate at 6 per cent, reverse repo rate at 5.75 per cent

Consequently, the reverse repo rate under the LAF remains at 5.75 percent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25 percent.

RBI stated that 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.

RBI Governor Urjit Patel, said, "The recent reforms undertaken will help pick up the rate of growth."

On recapitalization of banks, he said, "Bank recapitalization plan is a reform as well as recap package."

Viral Acharya, Deputy Governor, said, " Liquidity conditions continued to normalise gradually during the year. The overhang of liquidity surplus in banking system forced the withdrawal of specific bank notes in Nov 2016, touched the peak of close to Rs 7.96 trillion at year's beginning and now come down.

OneIndia News

For Daily Alerts
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
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 Oneindia 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 Oneindia website. However, you can change your cookie settings at any time. Learn more