RBI holds rate at 6.25%, cuts growth forecast: Full text of policy statement
This is the third policy review by the monetary policy committee
The RBI's Monetary Policy Committee (MPC) on Wednesday kept its repo rate (the rate at which central bank lends money to banks) unchanged at 6.25 percent in its third review meeting. The move came unexpected as a Reuters poll of economists, in which majority of the respondents said they expected a quarter percentage point cut.
In October, which was the maiden policy review by the MPC, the repo rate was cut by 0.25 percent to 6.25 percent.
In the following policy meet in December, the repo rate was retained at 6.25 percent.
Besides the falling inflation, a weak economic scenario post demonetisation too mounted the pressure on the MPC to take a growth-supportive stance to stimulate individual and corporate loan demand.
Here is the full text of the RBI's policy review this year:
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