RBI keeps key rates on hold as growth slows
Patel hints at rate cuts on positive data prints as MPC decides to reduce SLR gradually to 18% by mid-2019
The Reserve Bank of India (RBI) in its fifth bi-monthly monetary policy review on Wednesday maintained status quo on rates and continued with its stance of calibrated tightening, but hinted at future policy easing. While the repo rate remains unchanged at 6.5 per cent, the reverse repo rate has been kept at 6.25 per cent. Though the rate decision was unanimous, Ravindra Dholakia of the six-member monetary policy committee (MPC) voted for a change in stance to 'neutral.' Addressing reporters, RBI governor Urjit Patel said if the consumer inflation (CPI) stays below 4 per cent on a durable basis, then a case can be made for reversal of stance to accommodative.