RBI keeps repo rate unchanged at 6.5%

The RBI held its repo rate unchanged, surprising most analysts who had expected a rate increase to combat inflationary pressures arising from high oil prices and a weakening rupee.

The Reserve Bank of India (RBI) held its policy rate unchanged, surprising most analysts who had expected a rate increase to combat inflationary pressures arising from high oil prices and a weakening rupee.

Five of the six panel members of RBI voted to leave the repo rate unchanged. (Picture for representation)

The monetary policy committee kept the repo rate unchanged at 6.50 per cent on Friday, in sharp contrast to expectations of a hike by 35 of 64 analysts in a Reuters poll last week.

The panel shifted its policy stance to ‘calibrated tightening” from ‘neutral’. Five of the six panel members voted to leave the rate unchanged. The reverse repo rate also stayed at 6.25 per cent.