RBI keeps repo rate unchanged |
The Reserve Bank of India (RBI) has kept key rates unchanged, as was widely expected. Repo rate - the rate at the which the central bank lends short-term money to banks - stays unchanged at 6.25 per cent. CRR or Cash Reserve Ratio - which is a portion of deposits that banks must mandatorily keep with the RBI—also stays unchanged at 4 per cent. The six-member Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel announced its second bi-monthly monetary policy statement for 2017- 18 in Mumbai after meeting for two days. The RBI had changed its monetary policy to "neutral" from "accommodative" in February, leaving the option for a rate hike or cut open in months ahead.After today`s monetary policy, home, auto and other loans` interest rates are likely to remain unchanged, as banks would not have any further room to cut rates. The RBI is likely to wait for the July 1 roll-out of GST (Goods and Services Tax) and assess the impact of the new tax regime on inflation before moving on rates. GST is touted as the largest tax reform since India`s independence in 1947 and aims to bring India under a unified tax regime moving away from the current system where various central and state taxes are levied on goods and services.
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