RBI policy review: Reverse repo rate raised to 6%, repo rate unchanged
RBI policy review will take place at 2:30 pm
 "RBI, RBI monetary policy")
Reserve Bank of India
The Reserve Bank of India has kept the repo rate unchanged at 6.25 per cent. However, the Reverse Repo Rate has been raised to 6 per cent. Cash Reserve Ratio has remained unchanged at 4 per cent.
Marginal Standing Facility Rate cut by 25 basis points. Now it stands at 6.5 per cent. GVA growth is projected to be 7.4 per cent in 2017-18 as compared to 6.7 per cent in 2016-17.
D K Srivastava, chief policy advisor, Ernst And Young says, "This is along expected lines. Repo rate has not been changed because there is an upward risk to inflation that is being anticipated, while growth appears to be turning positive in RBI's view. They are basically focused on inflation. The main thing is that neutral stance is being maintained."
Marginal Standing Facility Rate cut by 25 basis points. Now it stands at 6.5 per cent. GVA growth is projected to be 7.4 per cent in 2017-18 as compared to 6.7 per cent in 2016-17.
D K Srivastava, chief policy advisor, Ernst And Young says, "This is along expected lines. Repo rate has not been changed because there is an upward risk to inflation that is being anticipated, while growth appears to be turning positive in RBI's view. They are basically focused on inflation. The main thing is that neutral stance is being maintained."
4:11 PM
Chakri Lokapriya, MD & CIO, TCG AMC, says "Reverse Repo increased to 6 per cent is incrementally positive for banks. Importantly, RBI has announced that banks can start to invest in REITs, which is a positive measure for both banks and real estate developers. For banks it offers an additional important asset class for investing and brings liquidity. For commercial real estate companies, it brings in liquidity, and frees up capital which lowers their cost of capital."
4:08 PM
D K Srivastava, chief policy advisor, Ernst And Young says, "This is along expected lines. Repo rate has not been changed because there is an upward risk to inflation that is being anticipated, while growth appears to be turning positive in RBI's view. They are basically focused on inflation. The main thing is that neutral stance is being maintained."
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First Published: Apr 06 2017 | 4:08 PM IST
