RBI's key policy rates over the years
The Reserve Bank of India (RBI) has kept its repo rate unchanged at 6.25 per cent for the second time in a row.
- Feb 8, 2017,
- Updated Feb 8, 2017 7:17 PM IST
The central bank kept the policy rates unchanged in its last bi-monthly policy review in December 2016.The key rate was last changed by 25 basis points (bps) when the RBI Governor Urjit Patel presided over his first policy review, in October 2016. The current financial year saw repo rate sliding two times, by 50 bps in all, to 6.25 per cent. It is the lowest since November 2010. The RBI began reducing repo rate in January 2014, when it stood at 8 per cent -- it was gradually brought down to 6.25 per cent in October 2016. Repo rate is the rate at which the central bank lends money to commercial banks.
The reverse repo on the other hand increased by 25 bps in the policy review in April 2016 and was subsequently lowered to 5.75 per cent in the next policy review. Reverse repo is the rate at which the central bank borrows money from banks. Historically, repo rate touched a high of 9 per cent in July 2008 and touched a low of 4.75 per cent in April 2009. Reverse repo saw a high of 7.5 per cent five years ago, in October 2011. In the current financial year 2016/17, the gap between the two key policy rates -- repo and reverse repo -- reduced to 0.5 percentage points from 1 percentage point earlier. The gap of 100 bps between these key rates remained for five years, between September 2010 & September 2015. The gap was 1.25 percentage points between September 2010 and July 2010 and 1.5 percentage points between December 2008 and July 2010.
The central bank kept the policy rates unchanged in its last bi-monthly policy review in December 2016.The key rate was last changed by 25 basis points (bps) when the RBI Governor Urjit Patel presided over his first policy review, in October 2016. The current financial year saw repo rate sliding two times, by 50 bps in all, to 6.25 per cent. It is the lowest since November 2010. The RBI began reducing repo rate in January 2014, when it stood at 8 per cent -- it was gradually brought down to 6.25 per cent in October 2016. Repo rate is the rate at which the central bank lends money to commercial banks.
The reverse repo on the other hand increased by 25 bps in the policy review in April 2016 and was subsequently lowered to 5.75 per cent in the next policy review. Reverse repo is the rate at which the central bank borrows money from banks. Historically, repo rate touched a high of 9 per cent in July 2008 and touched a low of 4.75 per cent in April 2009. Reverse repo saw a high of 7.5 per cent five years ago, in October 2011. In the current financial year 2016/17, the gap between the two key policy rates -- repo and reverse repo -- reduced to 0.5 percentage points from 1 percentage point earlier. The gap of 100 bps between these key rates remained for five years, between September 2010 & September 2015. The gap was 1.25 percentage points between September 2010 and July 2010 and 1.5 percentage points between December 2008 and July 2010.