Monetary policy review: RBI keeps repo rate unchanged at 6.5 per cent

RBI said the policy stance had changed to 'calibrated tightening' from neutral. Headline inflation was estimated to accelerate to 4.5% by March 2019 quarter with upside risks

Contrary to market expectations, the monetary policy committee (MPC) of the Reserve Bank, in its fourth bi-monthly monetary policy review of 2018-19, kept repo rate unchanged at 6.5 per cent on Friday.

Repurchase rate, or repo, is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds.

The central bank said the policy stance has changed to "calibrated tightening" from neutral. Headline inflation was estimated to accelerate to 4.5 per cent by March 2019 quarter with upside risks, it said.