Mumbai: The Reserve Bank of India kept its policy repo rate unchanged at 6% on Thursday for the fourth straight meeting and stuck to its ‘neutral’ stance as expected to support an early recovery in economic growth as inflation eases.
This is the fourth policy review in succession that the Reserve Bank of India’s (RBI) six-member Monetary Policy Committee (MPC) has kept the repo, or short-term interest rate for commercial banks, unchanged, according to the RBI statement here.
As per official data, retail inflation based on the Consumer Price Index (CPI) fell to 4.44 per cent in February, from 5.07 per cent in January, but remained outside the RBI’s medium-term target of 4 per cent.
All 61 respondents had predicted the rate would be kept on hold at its lowest level since November 2010. The reverse repo rate was also unchanged at 5.75%. Five of six members on the rate setting monetary policy committee voted to stand pat, while one voted for a hike.