RBI leaves repo rate unchanged at 6%; cuts GVA growth estimate to 6.7%

Posted by Daily Shipping Times on 05-10-2017        Tweet

NEW DELHI: The six-member Monetary Policy Committee (MPC) of Reserve Bank of India, headed by Governor Urjit Patel, left the short-term lending rate, also known as repo rate, unchanged at 6 per cent.

The committee also did not tweak the cash reserve ratio (CRR), which remained unchanged at 4 per cent, but cut statutory liquidity ratio (SLR) requirement by 50 basis points to 19.5 per cent.

The projection of real GVA growth for 2017-18 has been revised downward to 6.7 per cent from an August 2017 projection of 7.3 per cent, with risks evenly balanced.

"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 Central Bank said in its policy statement.