Breaking News: RBI keeps repo rate unchanged at 6.25%

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Breaking News: RBI keeps repo rate unchanged at 6.25%The Reserve Bank of India (RBI) maintained status quo and kept the repo rate at 6.25%, as it shifted its stance from accommodative to neutral.
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RBI Governor Urjit Patel kept the Cash Reserve Ratio (CRR) unchanged at 4% and hiked the Reverse Repo Rate to 5.75% to 6%. It cut the MSF rate to 6.5%. The RBI will handle liquidity through OMO, MSS

Consumer prices rose an annual 3.65% in February, and climbed just 3.17% the previous month - the slowest pace since the government launched the current index series in January 2012.

As per the six-member Monetary Policy Committee (MPC), their main concern is inflation could accelerate and threaten RBI’s medium-term target of 4%.

"It is important to note three significant upside risks that impart some uncertainty to the baseline inflation path -- the hardening profile of international crude prices; volatility in the exchange rate on account of global financial market developments, which could impart upside pressures to domestic inflation; and the fuller effects of the house rent allowances under the 7th Central Pay Commission,” the RBI stated.

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In last monetary policy review too, the RBI had kept repo rate unchanged.