INSUBCONTINENT EXCLUSIVE:
RBI Policy: GDP growth estimate was retained at 7.4% for fiscal year ending in March 2019.The Reserve Bank of India (RBI) on Friday kept the
repo rate (key lending rate) unchanged at 6.5 per cent
Meanwhile, rupee breached the 74-mark against US dollar for the first time, hitting a new low of 74.20 against the dollar soon after the RBI
announced its monetary policy
Even as RBI Governor Urjit Patel said that the rupee fall is moderate in comparison to emerging markets peers, the rupee breached the
74-mark against the US dollar for the first time ever, reported news agencies Reuters and Press Trust of India (PTI).Anticipation of a rate
hike had increased in the past month as oil prices climbed, the rupee's slide accelerated and concerns on liquidity emerged
Experts had largely expected the central bank to hike the repo rate by 25 basis points or 0.25 per cent
However, five of the six panel members voted to leave the rate unchanged.The reverse repo rate or the rate at which RBI borrows from
commercial banks also remained unchanged at 6.25 per cent.The RBI had last raised interest rates in two successive policy reviews in August
and June this year.The RBI retained GDP growth estimate at 7.4 per cent for fiscal year ending in March 2019.
