Reserve Bank of India kept the repo rate unchanged
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Reserve Bank of India kept the repo rate unchanged

Reserve Bank of India kept the repo rate unchanged

  • February 2, 2016  
  • |  
  • UPDATED   12:14 IST

Reserve Bank of India kept the repo rate unchanged at 6.75%, consequently, the reverse repo rate remains unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.75 per cent

In its press release, RBI states,"Since the fifth bi-monthly statement of December 2015, global growth has slowed, with the ongoing weakening of activity in major emerging market economies (EMEs) outweighing the recovery in some advanced economies (AEs). World trade has remained subdued, held down by anaemic demand, new lows in commodity prices and currency realignments...In China, growth in Q4 of 2015 was the slowest since 2009, pulled down by manufacturing, residential investment and exports."

On the implementation VII pay commission the press release states that "the implementation of the VII Central Pay Commission will impart upward momentum to inflation's trajectory for a period of one to two years. The Reserve Bank will adjust the forecast path as and when more clarity emerges on the timing of implementation."