RBI monetary policy: Repo rate kept unchanged at 6%

Statutory liquidity ratio reduced by 50 basis points to 19.5%

The Reserve Bank of India’s (RBI’s) six-member Monetary Policy Committee (MPC), headed by Governor Urjit Patel, on Wednesday kept the repo rate – the key policy rate at which the RBI lends money to banks – unchanged at six per cent, in a decision that was broadly in line with expectations.
 
The RBI reduced the gross value added (GVA) growth target for the current financial year to 6.7 per cent from 7.3 per cent earlier. 
 
In its fourth bimonthly review of the monetary policy, the RBI, however, lowered the statutory liquidity ratio – the reserve requirement that commercial