New Delhi, Apr 5 (KNN) Even though the credit demand is growing at a healthy 14%, Reserve Bank of India's Governor Shaktikanta Das said it is not broad-based while those to Micro, Small and Medium Enterprises (MSME) have been muted so far.

Addressing the press conference after the monetary policy review, Das said credit growth to the critically important MSME sector remains "muted".

Das said the RBI will continue to watch macroeconomic factors and will act timely on the same.

Credit flows to micro and small as well as medium industries remained tepid, though it has improved for large industries," resolution of the monetary policy committee read.

The Reserve Bank for the second consecutive time cut the benchmark rate 0.25% on expected lines and the MPC voted for the stance of the policy to be kept at "neutral".

At the second policy review under Das, the six-member Monetary Policy Committee voted 4:2 in favour of the rate cut.

The benchmark interest rate was cut by 0.25% to 6%, a move that will result in lower cost of borrowing for the banks that are expected to transmit the same to individuals and corporates. (KNN/JM)