Sensex vaults 577 pts as RBI holds rate, lowers inflation forecast

Benchmark Sensex surged 577 points to end at 33,597 today after the RBI kept the policy rate unchanged and lowered the inflation forecast.

The central bank kept the interest rate unchanged at 6 per cent for the fourth consecutive time since August last year, but lowered retail inflation projection for the first half of current fiscal to 4.7-5.1 per cent and 4.4 per cent for the second half.

The repo rate, at which the central bank lends short-term money to banks, will continue to stay at 6 per cent. The reverse repo rate, at which it borrows from banks and absorbs excess liquidity, will remain at 5.75 per cent