RBI keeps Repo Rate unchanged at 6.25%
The Reserve Bank of India (RBI) has kept policy rate unchanged at 6.25 per cent at the conclusion of its sixth bimonthly meet on Wednesday.
On the basis of an assessment of the current and evolving macroeconomic situation at its meeting, the Monetary Policy Committee, chaired by RBI governor Urjit Patel, decided to keep the policy repo rate under the Liquidity Adjustment Facility unchanged at 6.25 per cent, the apex bank said in a press statement.
The RBI lowered GDP growth forecast for the current fiscal to 6.9 per cent. However the apex bank expects a rebound in GDP growth to 7.4 per cent next year.
The central bank of the country has now projected inflation in the range of 4.0 to 4.5% in the first half of the financial year and in the range of 4.5 to 5.0% in the second half.
Following the RBI’s announcement, the Sensex plunged by over 180 points in afternoon trade.
RBI had also decided to keep policy rate unchanged in the last policy review in December, 2016.