Reserve Bank keeps key interest rates unchanged

Mumbai, Dec 2:

In line with expectations, the Reserve Bank of India (RBI) Tuesday decided to keep key interest rates unchanged in its fifth bi-monthly policy review.

The apex bank kept the repo rate, or the interest that banks pay when they borrow money from the RBI to meet their short-term fund requirements, unchanged at 8 percent.

The reverse repo rate, or the interest that the RBI pays to commercial banks when they park their surplus short-term funds with the central bank, has been adjusted to 7 percent.

The Cash Reserve Ratio (CRR) is left unchanged at 4 percent. The marginal standing facility rate and the bank rate is also kept unchanged at 9 percent.

The statutory liquidity ratio (SLR), the mandatory amount of bonds lenders must keep with the RBI, has been maintained to 22 percent of their net demand and time liabilities (NDTL).

The central bank’s action is on expected lines as most analysts had predicted a status quo, considering the macro-economic situation and current data. (IANS)