RBI keeps repo rate unchanged at 7.5 during its monetary policy review today

RBI Governor Dr Raghuram Rajan has kept key policy rates unchanged during its first 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 7.5% while the Reverse Repo Rate, the rate at which RBI borrows money from banks, was kept unchanged at 6.5%. 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.

Reserve Bank Governor has expressed confidence about meeting inflation target of 6% by January 2016 and projected GDP growth at 7.8% for the current fiscal year 2015-16.