LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » India News

Reserve bank of India keeps repo rate unchanged at 6.25%

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Reserve bank of India keeps repo rate unchanged at 6.25%
Photo: Reuters
Written By: ZeeBiz WebTeam
Updated: Wed, Feb 08, 2017
04:12 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
RBI remains steadfast to take any further measures to support growth: Shaktikanta Das RBI remains steadfast to take any further measures to support growth: Shaktikanta Das
RBI open to examine proposal on bad banks: Reserve Bank of India Governor Shaktikanta Das RBI open to examine proposal on bad banks: Reserve Bank of India Governor Shaktikanta Das
Warning for bank account holders! Keep your money safe, don't do this online  Warning for bank account holders! Keep your money safe, don't do this online
Mobile payment without internet to soon become reality in India Mobile payment without internet to soon become reality in India
This bank rule to change from January 1, 2021 | Contactless card transaction limit - know latest update This bank rule to change from January 1, 2021 | Contactless card transaction limit - know latest update

The Reserve Bank of India in its sixth bi-monthly policy for the financial year 2016-17 on Wednesday decided to keep repo rate unchanged at 6.25%. 

Reverse repurchase rate was also left unchanged at 5.75%. RBI, however, changed its policy stance to neutral from accommodative. RBI said that it expects consumer price index or retail inflation in fourth quarter to be below 5%. 

Markets reacted sharply to the news with BSE Sensex falling over 120 points, 0.43% a 28,213.21 points at 1437 hours. Rupee, too, fell after RBI announced its monetary policy. 

ALSO READ: Demonetisation, Budget upshot: Should RBI cut interest rates today?

Today's decision was not in line with experts' expectations. Some of the analysts had projected 25 bps cut this time. At its last meeting, 8 weeks ago, on December 7, the MPC had unanimously voted to keep the rates unchanged. 

Teresa John, research analyst, Nirmal Bang in a report dated February 7 said, "The February monetary policy review meeting, in our view, is the most opportune time for a final rate cut on the back of benign inflation and the government’s commitment to fiscal prudence in the Union Budget for 2017-18. Also, the government’s estimates suggest that growth will be less than 7% in FY17, in contrast with the RBI’s own estimate of 7.1%."

Factors like Inflation, demonetisation impact, fiscal deficit target, GDP growth were some of the major factors that had drived today's decision. Apart from these reasons, HDFC Securities in its report had said that the central should cut the rates also because the banks have transmitted more to the users as compared to what the RBI has done since the last cut. 

ALSO READ: 4 factors that RBI's MPC will keep in mind for today's monetary policy

A Reuters Poll had showed 28 of 46 participants expected the RBI to cut the repo rate by 25 basis points to 6.0%, its lowest since November 2010. Another two expected a 50 bps cut. A Bloomberg poll too expected a majority of economists favouring a 25 basis points rate cut. 

John had further said, "The only time since 1970 that benchmark interest rates in India have been lower than 6% was between January 2009 and August 2010 following the 2008 global financial crisis. This time around, the global backdrop is far from similar. Inflation expectations across the developed world are rising, and interest rates are slowly rising. Therefore, with benchmark interest rates already at 6.25%, we do not believe rates can fall by more than 25bps in this cycle."

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Reserve Bank of IndiaRBIRBI Bi-monthly monetary policyUrjit Patelrbi rate cutRBI no rate cutRBI rate expectationMonetary Policy CommitteeMPC decisionEconomyInflationDemonetisation
RELATED NEWS
RBI remains steadfast to take any further measures to support growth: Shaktikanta Das RBI remains steadfast to take any further measures to support growth: Shaktikanta Das
RBI open to examine proposal on bad banks: Reserve Bank of India Governor Shaktikanta Das RBI open to examine proposal on bad banks: Reserve Bank of India Governor Shaktikanta Das
Warning for bank account holders! Keep your money safe, don't do this online  Warning for bank account holders! Keep your money safe, don't do this online
Mobile payment without internet to soon become reality in India Mobile payment without internet to soon become reality in India
This bank rule to change from January 1, 2021 | Contactless card transaction limit - know latest update This bank rule to change from January 1, 2021 | Contactless card transaction limit - know latest update

LATEST NEWS

Budget 2021: Bring parity between pension products offered by life insurers and NPS, says Aditya Birla Sun Life Insurance MD Kamesh Rao

7th Pay Commission latest news today: Big salary hike for central government employees? Centre to announce DA gift this Holi?

In chat with Anil Singhvi, Yes Bank MD Prashant Kumar reveals 3-point action plan

FAU-G Game Launch date: Good news! Release tomorrow, beats PUBG Mobile India

CBSE Exams 2021: Datesheet announcement and other latest details, Class 10, 12 students must know

Urgent message for Indian Railways passengers about 'morphed' photo about trains

Big BSNL prepaid plans offer on Republic Day 2021; just check out the benefits

7th Pay Commission Latest News: Salary up to Rs 2.08 lakh plus NPA; take the first step to get this government job available on upsc.gov.in

PUBG Mobile India launch: Important notification issued by govt | Check reason for BIG Trouble here

Gold prices eases on doubts over U.S. stimulus passage

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved