India Central Bank Keeps Major Rates Unchanged

As expected, India’s central bank, Reserve Bank (RBI) on Dec 2 has kept major rates unchanged.

In its fifth bi-monthly monetary policy, the RBI kept repo rate under the liquidity adjustment facility (LAF)  at 8.0 per cent, while cash reserve ratio (CRR) of scheduled banks also stays unchanged at 4.0% of net demand and time liabilities (NDTL) and the reverse repo rate remains at 7%.

RBI governor Raghuram Rajan’s decision was in keeping with expectations as most experts had expected the repo rate, or the rate at which the central bank lends to banks, to remain unchanged, given his insistence on quelling inflation first.