As expected, Reserve Bank keeps the rates unchanged
New Delhi:As expected, the Reserve Bank of India (RBI) has maintained a status-quo and kept the interest rates unchanged. In simple words, it has given no relief either to the industry or to individuals.
Announcing the decision, after a monetary policy meeting, governor Raghuram Rajan, told media persons on Tuesday that the cash reserve ratio would remain at 4 per and repo rate at 6 .5 onweper cent.
Three factors could have played a role in this regard: uncertainty about monsoon, no change in Federal Reserve policy and the liquidity position. A change could be made in August when the bank holds its bi-monthly meeting.
The RBI governor has lowered interest rates by as much as 150 basis points in the last one year.