Mumbai, Feb 8 (KNN) In line with what the experts predicted, the Reserve Bank of India (RBI) kept the repo rate unchanged at 6.25 per cent.

The Monetary Policy Committee (MPC) unanimously voted to keep the repo rate unchanged.

Repo Rate is the rate at which RBI lends to banks.

RBI said it is expecting the growth to recover sharply in FY 18.

RBI had reduced the repo rate twice in the current financial year, which has led to a substantial fall in overall market yields.

In the Sixth Bi-monthly Monetary Policy Statement, 2016-17, RBI said, “On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25 per cent.”

Consequently, the reverse repo rate under the LAF remains unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.

RBI further said, “The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by Q4 of 2016-17 and the medium-term target of 4 per cent within a band of +/- 2 per cent, while supporting growth.” (KNN Bureau)