RBI leaves interest rate unchanged; tone hawkish
The Reserve Bank of India has left the key interest rate or the repo rate unchanged at 6.5 per cent in the second bi-monthly review of its monetary policy on Tuesday.
RBI indicated that the risks to inflation were on the upside. “The inflation surprise in April reading makes the future trajectory of inflation somewhat more uncertain”, RBI said.
The central bank had lowered rate by 25 bps to 6.5 per cent in the last policy review in April.
RBI has reduced the repo rate by 150 bps since January 2015.
Latest Updates:
11.50 am: We are not overly perturbed, says Rajan on payments bank dropping out.
11.45 am: Can’t rule out Brexit as a potential source of volatility: Rajan.
11.42 am: “Seriously, in all such cases a decision is reached after discussion with the government and the incumbent. I am sure you will know when there is news,” says Rajan.
11.40 am: On his extension as RBI governor: “I can’t do better than point you to the statement of the finance minister and the prime minister.”
11.30 am: “We always provide rupee liquidity, we are committed to do so.”
11.20 am: April Inflation was higher than the market or what we have expected, we need to see how it pans out: Rajan.
11.15 am: We may supply dollars in case of extreme volatility, but no one should take that as granted says Rajan.
11.10 am: Given the uncertainty, the RBI stays on hold but policy remains accomodative, says RBI governor Rajan.
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