Reserve Bank of India kept the repo rate unchanged at 6.25 percent in its latest monetary policy review meeting on Wednesday, despite growing calls for easing the monetary policy following the cash crunch in the economy post the government's demonetisation move.
The Reserve Bank of India's monetary policy committee voted 6-0 to leave the repo rate unchanged, after cutting it by 25 basis points (bps) at its last review in October.
RS Gandhi, Deputy Governor RBI said that the demonetisation decision was not in haste but after detailed deliberation, high level secrecy had to be maintained.
Here are the ten major takeaways from RBI's monetary policy review on Wednesday:
1. RBI keeps repo rate unchanged at 6.25 per cent
2. RBI keeps bank rate unchanged at 6.75 per cent
3. Retail inflation to be 5 per cent in fourth quarter of current fiscal
4. RBI lowered GDP growth estimate to 7.1 per cent in 2016-17 from earlier projection of 7.6 per cent
5. RBI supplied 19.1 bn pieces of denominations to public between 10th Nov-5th Dec 2016, which is more than total of last 3 years
6. Salary rise under the 7th pay commission has not been disruptive for inflation
7. The reverse repo rate under the LAF remains unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent
8. Old notes worth Rs 11.55 lakh crore recovered after demonetisation
9. RBI withdraws increment Cash Reserve Ratio from December 10 fortnight
10. RBI says that economy's growth will rebound strongly if demonetisation effect transient