RBI keeps repo rate unchanged at 6 per cent
Experts had predicted the RBI would keep the rates unchanged due to high inflation and a strong economic growth which did not require monetary stimulus. Photograph: (Reuters)
The Reserve Bank of India(RBI) today kept the policy rate unchanged at six per cent, deciding to keep the rate 'neutral'.
The RBI also kept the reverse repo rate unchanged at 5.75 per cent.
Experts had predicted the RBI would keep the rates unchanged due to high inflation and a strong economic growth which did not require monetary stimulus.
The rate is lowest since November 2010, reports said a five-member committee voted to keep it unchanged with one member voting against it.
The Sensex had slipped during the day ahead of the repo rate announcement as the market expected the Reserve Bank to keep rates at neutral.
The Finance ministry had announced recently India's growth in the second quarter had risen 6.3 percent in July-Sept period signaling an uptake in economic activity which was one of the reason for RBI to keep the policy rate at six per cent.