The Reserve Bank of India on Wednesday kept the benchmark repo rate unchanged at 6 per cent — the lowest in almost in seven years — while taking forward its neutral policy stance.
Consequently, the reverse repo rate under the LAF remains at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25 per cent, RBI said in a statement.
This was the fourth bi-monthly policy review of 2017-18 by RBI’s Monetary Policy Committee that was formed last year on the lines of Federal Open Market Committee in the US.
RBI said, “The decision of the MPC is consistent with a neutral stance 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 has six members — RBI governor Urjit Patel, two deputy governors and three government representatives.