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RBI maintains status-quo, rates to remain unchanged at 6 percent

Sify 2017-12-06 14:52:00

Mumbai: The RBI Monetary Policy Committee meet has finally delivered its decision on the interest rates.

The rates have been left unchanged at 6.00 percent, a seven-year low.

The reverse repo rate has also been left unchanged at 5.75 percent. Five members of the monetary policy voted to keep rates unchanged while only one voted for a 25 basis point or 0.25% cut in the interest rates.

Reuters' polls had predicted a status quo on the repo-rate suggesting that the central bank will maintain a neutral stance in its monetary policy. Markets were keen for a positive announcement, considering an economic easing and the news of Moody's revising sovereign ratings.

The committee has stayed the rates in spite of inflation triggering to a seven month high. Markets were also hopeful of some cheer considering a GDP rebound and positive ratings from Moody's.

India's GDP rebounded to 6.3 percent in the September quarter from a three-year low of 5.7 percent in the June quarter. Experts quickly indicated that this was owing to a rebound from GST related destocking concerns.

Read more about the impact of GST, Moody's and GDP here.