RBI keeps key interest rate unchanged

Mumbai: RBI today kept the key interest rate unchanged, on the expected lines, but raised the inflation forecast for the remainder of the current financial year to 4.3- 4.7 percent.

The 6-member Monetary Policy Committee (MPC), headed by Reserve Bank of India Governor Urjit Patel, in its fifth bi-monthly review, kept the repo rate unchanged at 6 percent and reverse repo at 5.75 percent.

It said the reason for the decision was “achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/- 2 percent while supporting growth”.

The central bank kept the economic growth forecast unchanged at 6.7 percent for the fiscal ending March 31.