RBI Leaves Repo Rate Unchanged at 6%; cuts GVA Growth Estimate
Governor Urjit Patel-headed six-member monetary policy committee (MPC) on Wednesday kept the short-term lending rate, also known as repo rate, constant at 6 per cent.
The committee left cash reserve ratio (CRR) unchanged at 4 per cent, but cut the statutory liquidity ratio (SLR) requirement by 50 basis points to 19.5 per cent.
The projection of real GVA growth for 2017-18 has revised down to 6.7 per cent from the August 2017 projection of 7.3 per cent, with risks evenly balanced.
Within seconds of the announcement, the benchmark indices pared some gains even as the outcome was much in line with the consensus view.
RBI is beset with an entirely new set of problems now – inflation is raising its ugly head again, the foundation of the economy looks shaken, FIIs are fleeing the country and the rupee is tumbling.
The domestic currency hit a low of 68.86 to the dollar in November 2016 on the government’s surprise note ban, but bounced back to trade in the 64-66 range only to slip again in last one month. The country’s GDP growth slipped to 5.7 per cent in June quarter from 7.3 per cent in September quarter last year.
Give Missed Call at +91 830-630-830-8