The Reserve Bank of India (RBI) on Wednesday kept the repo rate and reverse repo rate unchanged at 6 percent and 5.75 percent respectively.
The RBI's six-member Monetary Policy Committee (MPC) announced the policy decision without any surprise for the financial markets.
However, the telltale signs of weakness in the macro-economic indicators tied the hands of the MPC to maintain status quo on policy rates, even though inflation seems to be pretty under control.
The committee announced deduction in the statutory liquidity ratio (SLR) by 50 basis points to 19.5 percent, effective fortnight starting October 14.
The MPC is said to have discussed two main concerns including growth weakness and its impact on inflation dynamics and the inflation trajectory over the next six months (and beyond).
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