NEW DELHI, June 7 (Xinhua) -- India's central bank on Wednesday kept the key repo rate unchanged at 6.25 percent in line with the expectations.
Repo rate is the short-term rate at which the central bank lends money to other banks in the country.
Consequently, the reverse repo rate has been kept steady at 6 percent, and the marginal standing facility (MSF) rate and the bank rate at 6.50 per cent by the Reserve Bank of India (RBI).
However, the RBI has cut the statutory liquidity ratio (SLR) by 50 basis points to 20 percent, with effect from June 24.
The decisions were announced at the central bank's monetary policy committee's (MPC) review meeting in Mumbai, chaired by RBI Governor Urjit Patel.
"The decision of the MPC is consistent with a neutral stance of monetary policy," the RBI said in a statement.
The RBI, while calculating the repo ate at 6.25 percent, cited the latest data released by the Central Statistics Office on India's national income.
It also referred to the fourth quarter GDP (gross domestic product) growth that came at 6.1 percent.
"The growth of real gross value added (GVA) for 2016-17 has been pegged at 6.6 percent, 0.1 percentage point lower than the second advance estimates released in February 2017," the bank said.
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