RBI keeps interest Rate unchanged at 7.75pc

New Delhi: Reserve Bank of India as expected did not cut its interest rates and maintained status quo. RBI governor Raghuram Rajan announced the Sixth Bi monthly monetary policy today. RBI based on the current macroeconomic situation made an assessment and have decided to keep the policy repo rates unchanged.A decision also has been taken to keep the cash reserve ratio of scheduled banks unchanged at 4 per cent of net demand and time liabilities.

However the central bank has announced to reduce the Statutory Liquidity Ratio of scheduled commercial banks by 50 basis points.

IT has also decided to replace the export credit refinance facility with the provision of system level liquidity with effect from February 7, 2015.

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Amidst favorable macro economic conditions like inflation being under control and fiscal situation appearing better following a record Coal India Limited disinvestment, Reserve Bank of India reviewed its policy today.

RBI which last month announced a surprise rate cut of 25 basis points after maintaining a hawkish monetary stance for 20 months, is scheduled to undertake its sixth bi-monthly monetary policy review of 2014-15.