The Monetary Policy Committee or MPC of RBI announced to hold the repo rate at same 6.50%. The reverse repo rate also stayed at 6.25 percent. Today, the Reserve Bank of India refrained from increasing the repo rate and the short-term lending rate.
The six-member monetary policy committee head Governer - Urjit Patel opted to take a pause after hiking the repo rate in last two policy meetings. However, according to many analysts, there was an expectation of 25 basis points hike in the repo rate to 6.75% in view of the falling rupee and rising crude oil prices. The panel shifted its policy stance to ‘calibrated tightening’ from ‘neutral’.