The Monetary Plicy Committee (MPC) of the Reserve Bank of India at its third bimonthly policy review, reduced the short term lending rate or repo rate by 25 basis points to 6%.
The reverse repo rate has been adjusted to 5.75 percent whereas the marginal standing facility (MSF) rate and the bank rate to 6.25 percent.
Meanwhile, the MPC has decided to keep the policy stance neutral and to watch incoming data.
MPC maintained FY18 GAV forecast at 7.3 percent.
In June the CPI inflation stood at 1.54 percent which is lower than the central bank’s target range of 2-3.5 percent during the first half of the financial year.
