News

RBI keeps benchmark repo rate unchanged

by IBNS 07 Jun 2016, 12:28 am

Mumbai, June 7 (IBNS) : Reserve Bank Governor Raghuram Rajan on Tuesday kept the benchmark repo rate unchanged at a five-year low of 6.5 per cent, reports said.

The decision followed rise in retail inflation to 5.39 per cent from 4.83 per cent in March.

"The inflation surprise in the April reading makes the future trajectory of inflation somewhat more uncertain... Incoming data show a sharper-than-anticipated upsurge in inflationary pressures emanating from a number of food items (beyond seasonal effects), as well as a reversal in commodity prices,"  Rajan said in a statement.

He also said the RBI will stay on hold, but the stance of monetary policy remains "accommodative".