RBI leaves policy rates unchanged

RBI leaves policy rates unchanged

EMIs for housing and car loans are likely to remain unchanged after the Reserve Bank on Tuesday maintained the states quo on the key policy rate (repot, as was widely expected, and said there are risks to inflation.

The RBI. in its first bi-monthly monetary policy statement, left the short-term lending rate, or repo rate, unchanged at 8 per cent and the cash reserve ratio static at 4 per cent. It halved the overnight call money rate 10 0.25 per cent and increased ihe 7-day and 14-day repo limits to 0.75 per cent from 0.50 per cent.

"At the current juncture, it is appropriate to hold the policy rate, while allowing the rate increases undertaken during September 2013-January 2014 to work their way through the economy." said RBI Governor Rajan. For the first time since taking over in September. Rajan did not surprise the markets and kept rates unchanged, as predicted by most analysts.