Dissent among MPC and other takeaways from RBI policy

MPC members unanimously declined to meet Finance Ministry officials, said Urjit Patel

The Reserve Bank of India (RBI) held its repo rate at 6.25% as widely expected in its second bimonthly policy for FY18 saying the monetary policy committee is keen to avoid 'premature' action at this stage. It, however, lowered its CPI projections after recent data showed consumer prices rising more slowly.

The central bank cut its statutory liquidity ratio (SLR) by 50 bps to 20% starting June 24. The RBI also left its reverse repo rate unchanged at 6% after a surprise 25 basis point increase in April.

“The decision of the MPC is consistent with a neutral stance of