India's central bank keeps repo rate on hold at 6.25%, projects inflation at 5%
The RBI kept the Repo rate unchanged amid an uncertain global economic environment.
The Reserve Bank of India kept its repo rate unchanged for a third consecutive policy meeting
The Reserve Bank of India kept its repo rate at 6.25 per cent for a third consecutive policy meeting on Thursday as it continues to guard against any potential flare-up in inflation and an uncertain global economic environment.
RBI has projected inflation at 4.5 per cent for first half of2017-18 and 5 per cent for the second half of the year. "Upside risk to inflation arises from one-off effect ofGoods and Services Tax,"RBI chief Urjit Patel, RBI governor said at a press conference.
Several indicators point to modest improvement inmicro-economic outlook,RBIgovernor added.
The central bank has projectedGDP growth at 7.4 per cent for the currentfiscal, up from 6.7 per cent in 2016-17.Urjit Patel said risk is evenly balanced around inflation trajectory withupsiderisk from uncertainty about monsoon.
(WION with agencyinputs)