Reserve Bank of India governor Raghuram Rajan on Tuesday left the repo rate unchanged at 7.5 percent in his first bi-monthly policy view of the financial year 2015-16.
According to reports, Rajan said that despite a weak credit off -take and the front-loading of two rate cuts, the transmission of policy rates to lending rates has not taken place. The RBI governor also said that the transmission of rate cuts by banks will be his top priority.
Rajan further assured that the impact of the unseasonal rains to hit the country will also be monitored closely by the RBI.
The repo rate is the rate at which the RBI lends money to commercial banks in the event of any shortfall of funds.
