RBI maintains status quo for benchmark interest rate

Mumbai, Apr 05: Falling on the expected lines, the RBI, in its bimonthly review of its annual monetary policy, has maintained status quo for benchmark interest rate. Thus, repo rate will continue to be at 6.5 per cent.

“Outlook on macros and policy guidance would be key factors for further market momentum,” said RBI Governor, Dr Shaktikanta Das while addressing the media immediately on conclusion of three-day brainstorming monetary policy review meeting of Monetary Policy Committee here this morning.

Core inflation declined steadily. We will try to ensure to meet target 4 per cent of inflation and sees upside risk on inflation, he said.

The inflation has been hovering near to 5.1 per cent, with last reading coming at 5.09 per cent for February. Though it is well within the band of 4-6 per cent, RBI wants it to be closer to 4 per cent instead of closer or higher towards 6 per cent. The main task of the MPC is to keep inflation well under control, it has to give a reply to Central Govt of where and how it went wrong in its projections.