RBI policy rates News

Five out of the six-member Monetary Policy Committee (MPC) voted in favour of keeping the repo rate unchanged at 6.50 percent and the reverse repo rate at 6.25 percent.

The Reserve Bank Friday maintained status quo on the benchmark interest rate but warned that volatile and rising oil prices, and tightening of global financial conditions pose substantial risks to the growth and inflation.

Five out of the six-member Monetary Policy Committee (MPC) voted in favour of keeping the repo rate unchanged.

Anticipation of a rate hike has increased in the past month as oil prices climbed, the rupee`s slide accelerated and concerns on liquidity emerged.

Mumbai: With the Reserve Bank of India (RBI) not altering policy rates, it will be only the transmission of monetary policy that would influence India`s economic development and credit profile, credit rating agency Moody`s Investors Service said on Wednesday.  

Germany's Deutsche Bank joined the chorus of rate cut-callers on Friday saying it expects Reserve Bank Governor Raghuram Rajan to effect a quarter percentage point reduction in the policy rates on Tuesday.

The Reserve Bank is likely to cut policy rates by 0.25 percent in its upcoming policy review meet next week, a Citigroup report said on Wednesday.

As the RBI maintained a status-quo on interest rates on Tuesday, mutual fund houses said they expect the central bank to cut policy rates by 50 basis points in the next few months in view of improving macro-fundamentals.

The Reserve Bank of India could cut policy rates by 75-100 basis points starting early 2015 even if the US Fed hikes rates next year, says a Bank of America Merrill-Lynch report.