RBI retains its six per cent repo rate for the fourth time in a row
Mumbai, Apr 5 (IBNS): The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), in its first Bi-monthly Monetary Policy Statement, 2018-19, issed on Thursday, said it has decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.0 per cent.
This is the fourth time in a row that the repo rate is maintained by the RBI.
Consequently, the reverse repo rate under the LAF remains at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25 per cent.
The repo rate is the rate at which banks borrow from the central bank to meet short term fund requirements.
The RBI in its report said that the decision of the MPC is consistent with the 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.
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