RBI keeps key policy rate unchanged at 6%
Mumbai: The RBI on Thursday maintained status quo on its key short-term lending rate at 6 per cent at its first bi-monthly monetary policy review of the new fiscal, in line with what was being widely expected.
Marginal Standing Facility rate and the Bank Rate are kept unchanged at 6.25 percent. Our correspondent reports that MPC voted 5-1 in favour of status quo on Repo Rate.
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.
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.