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Breaking News: RBI keeps repo rate unchanged at 6.25%, to withdraw incremental CRR from Dec 10

BI India BureauDec 7, 2016, 14:44 IST

RBI Governor Urjit Patel maintained status quo and kept the repo rate unchanged at 6.25% . The central bank will withdraw the incremental Cash Reserve Ratio (CRR) from December 10.

This is the first monetary policy since Prime Minister Narendra Modi announced demonetisation on Nov 8, wiping out 86% of the cash in circulation. The currency in circulation plunged by Rs 7.4 lakh crore up to Dec 2

The Monetary Policy Committee (MPC) kept the Cash Reserve Ratio (CRR) unchanged . The RBI cut FY17 GVA forecast to 7.1 % to 7.6%.

Indian economy grew 7.3% between July and September. The announcement comes at a time when there is a surge of capital flows back into the United States. This might give Federal Reserve room to cut rates next week.
The RBI maintained an accommodative stance. The projects CPI at 5% in Q4 of 2016-17 with risks tilted to the upside.