RBI maintains status quo, keeps repo rate unchanged at 6.50%

The Reserve Bank of India (RBI) kept the repo interest rate unchanged at 6.50 per cent and the cash reserve ratio (CRR) was also steady at 4 per cent.

In its bi-monthly monetary policy review, the central bank took an accommodative stance.

The RBI stated the monsoons are critical for farms are reservoir levels plunge. RBI Goveror Raghuram Rajan also reiterated his stance of bringing the cash deficit towards neutrality.

The future CPI path was also somewhat more uncertain.

Rajan said timely capital infusion was critical and retained the gross value added growth at 7.6%

The world's fastest growing big economy is expected to benefit from good rains forecast for this year, after two successive years of drought.

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