Read the full text of RBI's third bi-monthly policy statement for the year 2016-17.
Zee Media Bureau
New Delhi: Reserve Bank of India (RBI) Governor Raghuram Rajan kept key policy rates unchanged in his last monetary policy review with little elbow room on account of the country's retail inflation inching closer to the upper tolerance level of 6 percent.
Accordingly, the repurchase (repo) rate or the interest commercial banks pay the central bank for short-term loans, remains unchanged at 6.5 per cent. The cash reserve ratio (CRR) that scheduled banks have to keep in the form of liquid funds also remains unaltered at 4 per cent of deposits.
In the previous policy update, too, conducted on June 7, the policy rates were left unaltered.
This is also the last monetary policy update that will afford the central bank governor to fix policy rates with the government set to entrust the task to a soon-to-be-constituted Monetary Policy Committee.