MPC holds rates; low inflation in April reason for status quo: RBI

| Updated: Jun 07, 2017 20:56 IST

New Delhi [India], June 7 (ANI): The six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), headed by Governor Urjit Patel kept the repo rate unchanged at 6.25 percent after its second bimonthly review of this financial year here today. The committee however, cut Statutory liquidity ratio (SLR) by 50 basis points to 20 percent starting June 24. "The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of four per cent within a band of +/- two percent, while supporting growth," stated the RBI in a statement. The policy rate decision comes after a two-day deliberation on June 6 and 7 by the Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel. To address the bad loan stress on the banks' financials, the central bank said it will continue to work in partnership with the government to address the stress in banks' balance sheets. On liquidity front, the RBI also reduced the Statutory Liquidity Ratio (SLR) of all banks to 20 percent from 20.50 percent of their net deposits from the fortnight starting June 24. (ANI)