RBI MPC keeps repo rate unchanged at 6pct

INDORE, India - Feb. 7, 2018 - PRLog -- The RBI on Wednesday retained the repo rate at 6% in its fourth bi-monthly monetary policy review of 2017-18. The RBI also kept the reverse repo rate at 5.75%. The cash reserve ratio also has been left unchanged at 4%. The key reason behind no change in policy rates reflects the Central bank's s focus on inflation control. It raised its March-end CPI inflation forecast to 5.1 percent and projected an inflation range of 5.1 to 5.6 percent in the first half of the next fiscal year.

The uptick in the GDP numbers for the quarter-September concern on the RBI to lower the monetary policy rates.

The banking sector stocks entered a negative zone ahead of the RBI's monetary policy decision as the stock market opened on Wednesday. BSE banks constituting 10 key banking stocks were traded at 0.40% lower at 28,345 levels.

The Indian rupee and bond prices rose after RBI kept its interest rates unchanged and monetary policy stance unchanged to neutral. The domestic currency was trading at 64.14, up 0.16 percent from its previous close of 64.25. The rupee opened at 64.11 a dollar and touched a high of 64.04 and low of Rs 64.19. The Ten-year bond yield was at 7.552 percent from its Monday's close of 7.568 percent.

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