RBI Plays Down Market Expectations, Keeps Repo Rate Unchanged
RBI Governor Urjit Patel said the Centre’s demonetisation drive was well-planned.
Published:
RBI Governor and other officials address a press conference in Mumbai on Wednesday. (Photo: PTI)
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Taking markets by surprise, RBI Governor Urjit Patel on Wednesday kept the short term lending rate unchanged even as the central bank lowered the estimated GDP growth rate to 7.1 percent.
The 6-member Monetary Policy Committee, which had in its first policy review cut interest rate by 0.25 percent in October, kept the repo rate unchanged at 6.25 percent unanimously.
In view of disruption in economic activities due to demonetisation, RBI downgraded its GDP growth forecast from 7.6 percent to 7.1 percent for the current fiscal.
(With inputs from PTI)
Video Editor: Mohd Ibrahim
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