RBI leaves repo rate unchanged at 6.0%

Author: Mike Paterson | Category: Central Banks

Reserve Bank of India out with latest decision 6 Dec

  • reverse repo unchanged at 5.75%
  • cash reserve ratio unch at 4.0%
  • retains neutral policy stance
  • 5 from 6 MPC members voted to keep rates on hold
  • MPC remains committed to keeping headline inflation close to 4%
  • sees H2 2017 inflation 4.3-4.7%
  • upside risk to inflation continues
  • recent rise in oil prices may have neg impact on margins and gross value added growth
Indian equity markets not liking the hawkish/cautious stance on inflation risks with NSEI down 0.6%  but rupee enjoying some gains before reversing.