Indices at days high post RBI keeps repo rate unchanged
MUMBAI (MAHAMEDIA) The Reserve Bank of India, in its last monetary policy review of the current financial year, has not made any changes to it keeping the repo rate unchanged. The repo rate remains unchanged at 5.15 percent. Earlier, the repo rate was reduced by 1.35 percent, after 5 consecutive cuts. The central bank has said that it will try to keep the policy stance as long as possible. All six members of the Monetary Policy Committee voted in favor of keeping the policy rate unchanged. Significantly, the Reserve Bank has not made any change in interest rates for the second time in a row. Earlier in the December meeting also, the RBI kept interest rates stable.
The RBI has said that the economy continues to soften, with the economic growth rate remaining below the potential. The Reserve Bank also expects inflation to remain high in the near future. Overall, the inflation outlook is highly uncertain.