Kolkata, May 15: RBI Governor Bimal Jalan on Thursday ruled out the possibility of a change in Repo rate, but hoped that inflation would turn soft from the second quarter of the current fiscal. "We maintain the same position that Repo rate is flexible, but there is no proposal right now to change it from five per cent," Jalan told reporters after a meeting of the Central Board of RBI here.
Repo rate is the rate at which RBI borrows overnight funds from banks. The current rate at which the apex bank borrows is five per cent. There was apprehension in the market that considering the existing liquidity in the market, rates might be changed.

The meeting of the Central Board discussed, among other things, the recently announced Monetary and Credit Policy for 2003-04.
Asked to comment on whether the prevailing inflation rate of over six per cent had peaked or would decline Jalan said "we should see some relief on this account in the second quarter, but obviously it is not possible to be very definitive, we have to watch the situation." Bureau Report