The Reserve Bank of India (RBI) on Wednesday kept the repo rate and reverse repo rate unchanged at 6 percent and 5.75 percent respectively.
The central bank's six-member Monetary Policy Committee (MPC), in its Bi-monthly Monetary Policy Statement, 2017-18, noted that the GVA growth as per the first advance estimates (FAE) released by the Central Statistics Office (CSO) is estimated to drop to 6.1 percent in 2017-18 from 7.1 percent in 2016-17
Consumer price index (CPI) inflation for 2018-19 is estimated in the range of 5.1-5.6 per cent in H1, including diminishing statistical HRA impact of central government employees, and 4.5-4.6 per cent in H2, the RBI said in its statement.
The MPC said the decision is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for CPI inflation of four percent within a band of +/- 2 per cent, while supporting growth.
The RBI statement added that all governors voted in favour of this Monterey Policy, except one, who had proposed a 25 basis point increase in credit policy.