RBI keeps repo rate unchanged at 6.75%, CRR at 4%

rbiThe Reserve Bank of India kept its repo rate unchanged at 6.75 percent and the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent in the fifth bi-monthly monetary policy announced on Tuesday.

On September 29, Reserve Bank Governor Raghuram Rajan had cut repo rate by 50 basis points to four-year low of 6.75 per cent.

The reverse repo rate under the liquidity adjustment facility (LAF) will remain unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.75 per cent.

The RBI will closely watch impact of 7th Pay Commission on inflation for future policy deliberations. It will shortly finalise methodology for base rate calculation based on banks’ marginal cost of funds.