RBI Monetary Policy

RBI Monetary Policy

BE/RBI NOTE/2/2018

No change in the Repo Rate is the current news in the six member Monetary Policy Committee (MPC), meeting headed by RBI Governor Urjit Patel.  The Repo Rate remains at 6 percent and the Reverse Repo Rate at 5.75 percent.


The Reserve Bank of India, meeting amidst the storm in the global market scam resulted in an unchanged key rate, keeping in view the growing inflation. The committee unanimously was in favour of keeping the Repo Rate at 6% and the Reverse Repo Rate at 5.75%. Five members of the six member committee favoured the decision.  The other reasons attributed for not bringing a change in the Repo Rate were:

  • A support was needed for the slow economy
  • A raise in the retail inflation which raised to 5.21% which was 4.88% in November last year. In December it read 3.41%.  The raise was attributed to the recent budget announced last week.
  • Ten year bond yields rose over 80 basis points since July, which was the biggest since the 2013 rupee crisis.

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