Repo rate retained at 6 percent- Reserve Bank of India remains even

Reserve Bank of India RBI, its monetary policy committee has retained the short-term-pending rate or Repo rate at 6 percent, unchanged during the fifth bi-monthly review of policy during the current fiscal year. this decision was on the expected lines as 95 percent (52 out of 54) of the financial expert's survey poll were sure that policy rate will be retained.

Seven-year low policy rate is still retained. Sine the committee reduced the key lending rate by 25 basis points in August 2017.

Inflation statistics in the past five months revealed a rise in the cure oil prices, G.S.T rates, and loss-making varients due to risk factors during the current financial year. Experts believe US Federal Reserve intends to up the interest rate in the next week's policy review, has forced the Monetary Policy committee to retain the rate cut.

RBI forces inflation to remain between 4.3 to 4.7 percent till 31st March 2018. Even though vegetables are costlier, non-arrival of vegetable during productive winter, the prices are subject to change. Pulses rate are in the fall since GST rates reduced on several retail goods and service to lower tax, which should have a bearing on retail prices in future.

Farm loan waivers by some states, roll back partly on excise duty and VAT on some petroleum products thereby decrease in revenue may have its effect on inflation.

 

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