Home / Knowledge / News / Textiles / RBI keeps key rates unchanged
RBI keeps key rates unchanged
07
Jun '16
The Reserve Bank of India has kept the interest rates unchanged at its policy review. The repo rate stands at 6.5 per cent, while CRR has been retained at 4 per cent and reverse repo stays at 6 per cent. The decision has been on expected lines.

The bank also said that April's inflation reading makes the future trajectory of interest rates “somewhat more” uncertain. Rising crude prices and the implementation of the Seventh Pay Commission pose an upside risk to inflation, it added.

The retail inflation rose to 5.39 per cent in April on higher food prices, reversing a downward trend seen in recent months. It was above RBI's near-term target of 5 per cent by March 2017.

“The expectations of a normal monsoon and a reasonable spatial and temporal distribution of rainfall, along with various supply management measures and the introduction of the electronic national agriculture market (e-NAM) trading portal, should moderate unanticipated flares of food inflation,” the bank said.

The RBI also retained the growth projection of 7.6 per cent for 2016-17 citing corporate profits and a surge in consumption. It said it will also soon review the implementation of marginal cost lending rate framework by banks.

Ahead of the RBI's announcement, many economists said RBI governor Raghuram Rajan could cut the repo rate by 25 basis points between July and September if the monsoon forecasts turns out correct.

They said that if another cut does happen it will possibly be the last reduction in rates in the cycle.

The RBI governor has lowered interest rates by as much as 150 basis points in the past year, to the current 6.5 per cent, which is a five-year low. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Information Technology | On 25th Apr 2017

Self-repairing fabrics to be the future of fashion

It is the era of smart. Intelligent materials like self-repairing...

Textiles | On 25th Apr 2017

Indonesia revitalising textile sector

With exports of textile and textile products rising in Indonesia, the ...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search