RBI retains the interest rate; no decline in EMI
Mumbai: Amidst all the speculations, the Reserve Bank of India retain the ongoing interest rates in its monetary policy review on Wednesday. The bank retained the repo rate at 6.5 per cent. The reverse repo rate remains at 6.25 percent.
This decision of the RBI has come as a shock for those who were hoping for the cut in the EMI.
SLR increased by 25 basis point
However, to increase the liquidity outflow, the RBI has cut SLR(Statutory Liquidity Ratio) by 0.25 per cent.
Under the SLR ,every banks have to deposit a fixed amount with RBI. Although , the central bank has not made any changes in Cash Reserve Ratio (CRR).
RBI expect GDP at 7.5%
Apart from this, the Reserve Bank has estimated the GDP growth rate at 7.5 percent for the first half of fiscal year 2019-20. In the previous review meeting held in October, the Reserve Bank did not make any changes in interest rates.
This meeting of the RBI was considered to be very important because recently there was a long dispute between the government and the RBI regarding transfer of funds.