The Reserve Bank of India on Wednesday left repo rates ( the rate at which the RBI lends to banks) unchanged at 6 per cent, even as it retained economic growth projection for 2017-18 at 6.7 per cent. The Monetary Policy Committee’s fifth bi-monthly review, headed by RBI Governor Urjit Patel, also raised the inflation forecast for the remainder of the current financial year to 4.3-4.7 per cent.
Explaining its move, the six-member committee said the reason for its decision was “achieving medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth”, reported PTI. The RBI said the government’s farm loan waiver, partial roll back of duty on fuel and reduction in GST rates on several items might result in fiscal slippage. On the positive side, RBI said there had been some pick up in credit growth in recent months.

The Reserve Bank of India on Wednesday left repo rates ( the rate at which the RBI lends to banks) unchanged at 6 per cent, even as it retained economic growth projection for 2017-18 at 6.7 per cent. The Monetary Policy Committee’s fifth bi-monthly review, headed by RBI Governor Urjit Patel, also raised the inflation forecast for the remainder of the current financial year to 4.3-4.7 per cent.
Explaining its move, the six-member committee said the reason for its decision was “achieving medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth”, reported PTI. The RBI said the government’s farm loan waiver, partial roll back of duty on fuel and reduction in GST rates on several items might result in fiscal slippage. On the positive side, RBI said there had been some pick up in credit growth in recent months.