Urjit Patel keeps policy rates unchanged

The Reserve Bank of India in its first bi-monthly policy meet for FY2018-19 has left the policy repo rates unchanged at 6 per cent.

The Monetary Policy Committee (MPC) and RBI have decided to maintain status quo on the interest rates. The RBI Governor, Urjit Patel on Thursday announced that the policy repo rate under liquidity adjustment facility (LAF) will remain unchanged at 6 per cent. Thus the reverse repo rate under LAF will remain 5.75 per cent, while the marginal standing facility rate (MSL) and bank rate will be at 6.25 per cent.

The announcement is in-line with MPC's neutral stance aimed at achieving CPI inflation target of 4 per cent in the medium-term, and also supporting growth.

Post the RBI monetary policy announcement, at 15:09 hours, Bank Nifty was at 24,693.85, up by 2.34 per cent, while the Nifty PSU Bank was at 2,952.35, up by 3.51 per cent, while Nifty Private Bank was at 13,944.85, up by 2.43 per cent. Meanwhile, the benchmark index, Nifty50 was at 10,318.85, up 190.45 point or 1.88 per cent on Thursday.