5th bi-monthly Monetary Policy Review (MPR) of RBI

The Reserve Bank of India (RBI) has kept the key interest rate “repo rate” unchanged at 6% and reverse repo at 5.75% in its fifth bi-monthly monetary policy review for the year 2017-18 on December 6, 2017, as it feared that inflation may top the central bank’s medium-term target of 4%. It also maintained its neutral policy stance. Consequently, the Marginal Standing Facility (MSF) rate and the Bank Rate remained at 6.25%. The central bank has raised inflation forecast to 4.3-4.7% in third and fourth quarters of current fiscal and kept the economic growth forecast “Gross Value Added (GVA)” unchanged at 6.7%.