News RBI Hits Pause

[scorpionking76]

Reserve Bank Governor Raghuram Rajan held repo rate steady at 6.75 per cent as widely expected, after retail inflation picked up to a four-month high and as emerging markets brace for a US rate hike.

Dr Rajan noted that global growth continues to be weak and the domestic economy is in the early stages of a recovery, while highlighting the fact that food inflation rose sharply in October.

"The Reserve Bank will follow developments on commodity prices, especially food and oil, even while tracking inflationary expectations and external developments. The implementation of the Pay Commission proposals, and its effect on wages and rents, will also be a factor in the Reserve Bank's future deliberations," Dr Rajan said.

RBI Hits Pause, But Raghuram Rajan Nudges Banks to Cut Lending Rates - NDTVProfit.com

 

[Technoglitch]

what does it mean in lay man terms?

 

[scorpionking76]

That means there is no reduction of Repo rate. Repo rate is the rate at which the banks take money from RBI. The lesser the Repo rate the less interest rate available in the market

 

[IndianMascot]

ok. so interest rates too going to be stable for a long time now.

 

[Sanjeev]

I was expecting a marginal decrease in interest rates but nothing happened

 

[IndianMascot]

Don't expect it in nearby months now.

 

[scorpionking76]

Yes because it is related to inflation as well. Now inflation is slightly high so RR don't want to soften the rates.