India’s central bank leaves interest rates unchanged

Mumbai, Aug 4 (IANS) India’s central bank kept its key lending rates unchanged during its monetary policy review on Tuesday, sticking to its stand that further cuts will depend on commercial banks passing on the previous reductions to borrowers, among other factors.

Reserve Bank of India Governor Raghuram Rajan chose to maintain both the repo rate, or the short-term lending rate, and the cash reserve ratio, or the liquid money banks have to compulsorily hold, at 7.25 percent and and 4.0 percent, respectively.

Accordingly, the reverse repurchase rate, or the central bank’s borrowing rate, has also been left unchanged at 6.25 percent.

Speaking about the current situation pertaining to growth and inflation, among other issues, Rajan said: “Taking into account all this, and given that policy action was front-loaded in June, it is prudent to keep the policy rate unchanged at the current juncture while maintaining the accommodative stance of monetary policy.”

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of or any employee thereof. is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here