MPC starts FY19 with status quo on rates: Top takeaways of policy decision

The RBI has maintained the status-quo on the key short-term borrowing rate (repo) in its last three policy meets.

In its first bi-monthly monetary policy review of 2018-19, the Reserve Bank of India’s (RBI’s) six-member monetary policy committee (MPC), headed by Governor Urjit Patel, on Thursday kept unchanged the key repo rate at 6 per cent and cash reserve ratio at 4 per cent.
 
The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
 
The RBI has maintained the status-quo on the key short-term borrowing rate