Mumbai, Oct 4 (IBNS): The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at six per cent.
Consequently, the reverse repo rate under the LAF remains at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.25 per cent.
The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth, the RBI release said,
There has been a huge fall in growth projections, from 7.3 per cent in August to 6.7 per cent now, media reported.
RBI governor Urjit Patel said that loss of growth is a concern and inflation is expected to rise from 4.2 per cent to 4.6 per cent.