RBI keeps repo rate unchanged at 6.75 percent during its monetary policy review today

RBI Governor Dr Raghuram Rajan has kept key policy rates unchanged during its sixth bi-monthly monetary policy review meeting for fiscal year 2015-16 today. Repo rate, the rate at which RBI lends money to banks for the short term, was kept unchanged at 6.75% while the Reverse Repo Rate, the rate at which RBI borrows money from banks, was kept unchanged at 5.75%. The cash reserve ratio for banks has been kept unchanged at 4%.

The RBI has also kept statutory liquidity ratio (SLR) of scheduled commercial banks unchanged at 21.5%. Statutory liquidity ratio (SLR) refers amount that the commercial banks require to maintain with the RBI in the form of gold or government approved securities (G-Secs or bonds) before lending. Marginal standing facility (MSF) rate and the Bank Rate that is rate at which RBI lends money to domestic banks kept unchanged at 7.75%. The RBI governor also has retained its earlier projection of 7.4% GDP growth for the financial year and inflation at 5% for financial year 2016-17.