Reserve Bank of India keeps policy rates intact
Mumbai, Dec 5 (IBNS): In a major move, the Reserve Bank of India on Wednesday kept its key lending rate for commercial banks unchanged at 6.5 percent.
This was for the second time in succession when the bank kept the rate unchanged.
"On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent," the RBI said in a statement.
This was the penultimate monetary policy review by the bank in the current fiscal.
The bank further said in a statement: "Consequently, the reverse repo rate under the LAF remains at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent."
It said: "The decision of the MPC is consistent with the stance of calibrated tightening 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. The main considerations underlying the decision are set out in the statement below."
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