This policy announcement witnessed a status quo as far as the key policy rate is concerned.
The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.25 per cent in its monetary policy review on June 7, the second bi-monthly review for the financial year 2017-18.
This policy announcement witnessed a status quo as far as the key policy rate is concerned. The repo rate, at which banks borrow from the central bank, has remained unchanged for the fourth time in a row.
Five members voted in favour of the decision while one was against it.
Inflation could be one of the reasons for the RBI to maintain the status quo on the rates. In its previous meeting in April 2017, the RBI Monetary Policy Committee had already remarked that inflation is projected to average 4.5 percent in the first half of the year and 5 percent in the second half.