RBI Keeps Repo Rate Unchanged at 6.5%
Amid soaring inflation and slump in GDP growth, the Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 6.5%
RBI Keeps Repo Rate Unchanged at 6.5%
Amid soaring inflation and slump in GDP growth, the Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 6.5%. The six-member Monetary Policy Committee (MPC) led by RBI Governor Shaktikanta Das maintained a ‘Neutral’ stance.
While the GDP slumped to 5.4% in the September quarter, inflation reached above the Central bank tolerance limit at 6.2%.
Currently, Cash Reserve Ratio (CRR) stands at 4.5%. CRR is a regulatory measure under which banks are required to keep a certain percentage of their total deposits with the RBI. The central bank may reduce CRR by 25 basis points (bps) or 50 bps.
