Reserve Bank of India announces no changes in Reverse Repo Rate
Posted on: 06/Oct/2018 9:37:21 AM
Usually, the financial policy review meetings are conducted by the Reserve Bank of India once in 2 months. The decisions will be announced after the meeting.
In the last 2 meetings conducted, the interest rates were increased. In the last meeting conducted in August, the short-term interest rate for the banks which pay the Reserve Bank of India called as ‘Reverse Repo’ was increased by 0.25%.
Accordingly, the Repo interest rate increased to 6.5% and the reverse repo increased to 6.25%.
In this situation, The Finance Policy council met again on Friday, 5th October headed by the RBI governor, Urjit Patel. The council reviewed regarding the interest rates. Various aspects such as the stock, inflation, the devaluation of Indian Rupee, and the economic status were discussed in detail.
The participants gave the opinion that considering the present stock market situation, no changes must be made in the interest rates. One member suggested an upward revision by 0.25%, Another member was neutral.
After this, the Reserve Bank of India released the review of the policy. It mentioned that there are no changes in the Repo and Reverse Repo rates – thus, Repo will remain at 6.5% and the reverse repo will remain at 6.25%.
During the period up to March, the inflation may increase to 4.5%. There would be no change in GDP which will remain at 7.4%
