RBI kept repo rate unchanged at 6.5 % in its December policy review

RBI kept repo rate unchanged at 6.5 % in its December policy review

RBI kept repo rate unchanged at 6.5 % in its December policy review

The Reserve Bank of India (RBI) has kept the reverse repo rate same maintained at 6.25 per cent and the repo rate also unchanged at 6.5 per cent in its December policy review. The repo rate is the rate at which the RBI lends short-term money to the banks. And, the reverse repo rate is the rate at which the RBI borrows money from commercial banks.

“The decision of the MPC (monetary policy committee) is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth,” RBI said.