In a much anticipated and steadied move, the RBI kept rates unchanged today in its last bi-monthly policy review for the calendar year. The key rate (Repo Rate) remains at 6.75 percent, Reverse Repo Rate at 5.75 percent, Cash Reserve Ratio (CRR) at 4 percent and Statutory Liquidity Ratio (SLR) at 21.5 percent respectively. Since its first policy review for this year back in January, the apex bank had reduced the key rate by 125 basis points or 1.25 percent allowing a significant room for the banks to reduce lending rates for the buyers.
“The surprise rate cut by RBI of 0.5 percent back in September was making this review’s decision quite clear to keep the rates unchanged and monitor current inflationary and fiscal developments. The banks are still to pass on these benefits to the customers in comparison to repo rate reductions by RBI till date, thereby giving the RBI reasons to hold back. If the commodity prices, including food and oil are kept under leash, rate reduction in next policy review is sure to follow”, elucidates Mr. Mukesh Khurana, MD, Rudra Buildwell.