RBI keeps repo rate unchanged at 6% for the fourth time in a row

Mumbai, April 5: Reserve Bank of India (RBI) has announced its monetary policy rate where repo rate at 6.25% and reverse repo rate at 5.75% which remains unchanged. The apex bank has kept the key policy rates unchanged as it expected earlier.

In its last meeting, the MPC had kept the policy rate stable at 6 per cent with a neutral stance. The next meeting of the MPC is scheduled on 5 and 6th June, 2018.

Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, began its two-day deliberations. The MPC expects the vegetable prices to moderate in the near term and pulses are already on the downtrend.

Repo rate is the rate at which RBI lends to banks generally against government securities while the reverse repo is the rate at which RBI borrows money from the banks.

The decision was on expected lines as according to experts as the central bank is awaiting clarity on monsoon, sustainability of high crude oil prices post the winter squeeze and global financial conditions.

The decision of the 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% within a band of +/- 2% while supporting growth.