RBI on Wednesday kept its repo rate unchanged at 6% percent. Today, the Reserve Bank of India led by Urjit Patel kept its lending rate unchanged at 6%, however, warned that hidden inflation worries in the new year that will increase fuel prices and could affect the household budget. Today, the governor of RBI Urjit Patel refused the calls of business leaders to cut down the interest rate seeking boost in the investment and to accelerate economic growth. The economy which has shown improvement in the growth last month.
The monetary policy committee of the Reserve Bank of India headed by the Urjit Patel including six other members feared that the inflation may top the medium-term target of 4% of the central bank. Thus, they decided to keep the repo rate unchanged. While in the review of October, the monetary policy had kept the benchmark rate unchanged and lowered the growth for the country’s economy to 6.7 percent in 2017-2018.
As per the recent data of India’s fiscal deficit the budget estimates at the end of October for the 2017- 18 hit 96.1% majority because of the lower revenue and rise in the expenditure. Ao, now the government aims to bring down the fiscal deficit to 3.2% of GDP.
No surprises here..as expected,#REPORate remains unchanged& #RBIPolicy maintains #Neutral stance;Interesting to note that neutral stance may change,based on #OutputGap dynamics,which basically means,a #RateHike,going fwd,is likely,as capacity utilization across industry,is rising
— Sanju Verma (@Sanju_Verma_) December 6, 2017