RBI keeps Repo Rate Unchanged at 6.5%


Mumbai: The Reserve Bank of India today kept the Repo Rate under the liquidity adjustment facility (LAF) unchanged at 6.5%. Similarly, the reverse Repo has also kept unchanged at 6.25%,  the Monetary Policy Committee (MPC) of the RBI said after the end of its 3 day meeting.

“On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent. Consequently, the reverse repo rate under the LAF remains at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The decision of the MPC is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth” the MPC statement said.


“ While the decision on keeping the policy rate unchanged was unanimous, Dr. Ravindra H. Dholakia voted to change the stance to neutral. The MPC reiterates its commitment to achieving the medium-term target for headline inflation of 4 per cent on a durable basis” the MPC said.


Repo rate is the rate at which banks borrow short-term funds from the Reserve Bank of India (RBI), while CRR is the share of a bank’s total deposits that it has to keep in a current account with the RBI.

The next meeting of the MPC is scheduled from February 5 to 7, 2019.

Leave A Reply

Your email address will not be published.