RBI keeps repo rate unchanged at policy review
What’s the story
The Reserve Bank of India (RBI) kept its policy rate unchanged at 6 per cent on Wednesday, despite a sharp slowdown in economic growth, after a surge in consumer inflation to a five-month high.
The RBI had cut repo rate by 25 basis points (bps) in August.
RBI Policy Review
"The decision of the Monetary Policy Committee (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 per cent within a band of +/- 2 per cent, while supporting growth," RBI said in its fourth policy review of 2017-18.
Other key points from the policy review
RBI has cut SLR (statutory liquidity ratio) by 50 basis points to 19.50 per cent
Reverse repo rate left unchanged at 5.75 per cent
Working on stressed banks’ balance sheets
Cut FY18 GVA growth forecast to 6.7 per cent from 7.3 per cent