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07/12/2017 11:36am

No change in the key interest rate, possible risks in inflation: Reserve Bank

image No change in the key interest rate, possible risks in inflation: Reserve Bank

New Delhi, Nov 7 (KNN) In line with the market expectations, the apex bank Reserve bank of India maintained the key interest rate unchanged in its monetary policy, announced on Wednesday.

RBI however did note the possible risks to inflation.

The repurchase rate at which the central bank injects liquidity in the country’s banking system was left unchanged at 6 per cent.

While keeping the rates unchanged, the monetary policy committee chalked out the several factors that might lead to added inflation. These factors include rising fuel and food prices.

The committee also observed that the factors including overall increased inputs costs in addition to the different loan waivers announced by the government of different regions will add to the the stress.

Inflation might strike also due to the decrease in revenue due to the cut in the Goods and Services Tax rates on different items.

Putting across factors that might push growth in the coming period, RBI noted that funds being raised from capital markets, government’s ongoing recapitalization drive etc. might help grapple the numbers.

Also the country’s new rank in the ease of doing business report of the World Bank might attract funds from across the world.  Also with regard to the stance of the Reserve Bank in the coming times, RBI maintained that it is going to follow a neutral positioning which spells that the bank will take decision based on the data flow of the coming quarters. (KNN/ DA)

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