4 Aug 2015
RBI keeps key repo rate steady at 7.25%
FXStreet (Mumbai) - The Reserve Bank of India (RBI) at Tuesday's Third Bi-Monthly Monetary Policy Review decided to keep the key repo rate steady at 7.25%, although keeps doors open for further easing.
The RBI policy statement – key quotes:
"It is prudent to keep the policy rate unchanged at the current juncture while maintaining the accommodative stance of monetary policy.”
“Short term real risk free rates are nevertheless supportive of borrowing by interest rate sensitive consumer segments such as housing and automobiles.”
“Significant uncertainty will be resolved in the coming months, including the likely persistence of recent inflationary pressures, the full monsoon outturn, as well as possible Federal Reserve actions."
The RBI policy statement – key quotes:
"It is prudent to keep the policy rate unchanged at the current juncture while maintaining the accommodative stance of monetary policy.”
“Short term real risk free rates are nevertheless supportive of borrowing by interest rate sensitive consumer segments such as housing and automobiles.”
“Significant uncertainty will be resolved in the coming months, including the likely persistence of recent inflationary pressures, the full monsoon outturn, as well as possible Federal Reserve actions."