Hello and welcome to ExamPundit. Here is the update on RBI's 5th Bi-Monthly Policy.
The Reserve Bank of India RBI announced on Tuesday that the repo rate would remain unchanged at 6.75 per cent.
RBI governor Raghuram Rajan said that the central bank is open to further policy accommodation based on positive data prints.
This announcement comes amidst the economy showing signs of early recovery. However, the RBI kept the GDP forecast unchanged at 7.4% with a moderate downward bias.
The Central Bank also called for better supply management of food items to contain inflation arising from rabi crop shortfall.
Stating that consumption demand is driven by urban markets, Mr. Rajan said that rural demand is still anaemic.
RBI will shortly finalise methodology for base rate calculation based on banks' marginal cost of funds.
Source: The Hindu