RBI leaves repo rate unchanged at 6.5%

The Reserve Bank of India’s Monetary Policy Committee (MPC), as expected, left the repo rate, the rate at which the central bank lends short-term funds to banks, unchanged at 6.5 percent.

“MPC voted unanimously to leave the repo rate unchanged at 6.5 percent,” Das said while announcing MPC’s decision.

The central bank also announced that it was withdrawing its incremental cash reserve ratio (ICRR), which was introduced in August to withdraw surplus liquidity from the system in a phased manner.

Further, the MPC also decided that Standing Deposit Facility (SDF) and Marginal Standing Facility (MSF) rates are also left unchanged at 6.25 percent and 6.75 percent, respectively.