RBI chooses inflation over growth, keeps repo rate unchanged
RBI has decided to keep key rates unchanged during its bi-monthly monetary policy meeting in Mumbai on October 4, 2017. RBI also revised GVA growth downwards to 6.7% from its earlier projection of 7.3%.
Key Highlights:
- RBI and MPC maintains neutral stance
- Revises GVA growth expectations to 6.7% from 7.3% earlier
- Stresses on recapitalisation of public sector banks
The Reserve Bank of India (RBI) has decided to keep key interest rates unchanged at 6% during its October bi-monthly monetary policy.
RBI, in a statement said, "The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth."
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