The Reserve Bank of India (RBI) in its second monetary policy review of this financial year kept the repurchase (repo) rate unchanged at 6.25 per cent. The central bank had last changed the policy rate on October 4, 2016, when the policy rate was cut by 25 basis points.
The apex bank left the reverse repo rate unchanged at 6 per cent after a surprise 25 basis points increase in April. The vote by the central bank’s monetary policy committee was 5-1, the first dissent in five meetings since the MPC was formed last September.
Global financial services firm BofA-ML believes RBI may slash repo rate by 25 basis points in August following a good monsoon outcome.