RBI keeps key policy rates unchanged in monetary policy review

The Reserve Bank of India today left its key policy rates unchanged, in it monetary policy review. Headed by Reserve Bank governor, Urjit Patel, the Monetary Policy Committee for the fourth straight time kept the repo rate, the rate at which the RBI lends to banks, unchanged at 6.25 per cent. 

The reverse repo, the rate at which the RBI borrows, was also kept steady, at 6 per cent. The Reserve Bank slashed the Statutory Liquidity Ratio, SLR, or the percentage of deposits that banks have to park in government securities,



by 0.5 per cent, to 20 per cent. 

The apex bank lowered its GDP growth forecast to 7.3 per cent for the current fiscal, from 7.4 per cent earlier. The RBI said implementation of the Goods and Services Tax is not expected to have a material impact on overall inflation. 

Later addressing a press conference in Mumbai, Mr Patel referred to demonetisation and said that new figures released by Central Statistics Office present a better picture of the economy as a whole.