Live updates | RBI keeps repo rate unchanged at 6%

The Reserve Bank of India (RBI) announced its bi-monthly monetary policy on Thursday. As many analysts expected the Central bank kept repo rate unchanged at 6% and the reverse repo rate stayed at 5.75%.

Sensex was up by 460 points (1.40%) at 33,480 ahead of the announcement.

Here are the updates:

RBI statement:

“Excluding the impact of HRA revisions, CPI inflation is projected at 4.4-4.7% in H1:2018-19 and 4.4% in H2,” the central bank said,

RBI said several factors were expected to accelerate the pace of economic activity in 2018-19.

“First, there are now clearer signs of revival in investment activity as reflected in the sustained expansion in capital goods production and still rising imports, albeit at a slower pace than in January.

"Second, global demand has been improving, which should encourage exports and boost fresh investment,” it said.

Read the full statement here.

Projects GDP growth to 7.4% in 2018-19:

According to RBI, GDP growth is projected to strengthen to 7.4% cent in 2018-19 – in the range of 7.3-7.4% in H1 and 7.3-7.6% in H2.

“The MPC notes that growth has been recovering and the output gap is closing. This is also reflected in a pick-up in credit offtake in recent months,” the central bank said.

Analysts expect no change in policy rates

The upcoming MPC meeting holds significance in terms of the guidance the RBI has to offer.

Rate-sensitive stocks rise ahead of RBI policy decision

Shares of interest rate-sensitive stocks like auto, banking and realty rallied in morning trade on the bourses ahead of the Reserve Bank of India’s monetary policy decision today. The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, will announce the resolution of the MPC on its first bi-monthly monetary policy for financial year 2018-19 later in the day.

RBI set to announce monetary policy later today

It is widely expected that the apex bank will keep the key policy rates unchanged. That should bring comfort to markets at large. The retail inflation has slowed to 4.4 per cent in February. And, the December quarter GDP (gross domestic product) grew at 7.2 per cent, the fastest in five quarters. If the mood is to go by, the RBI will keep its policy rates unchanged. Not surprisingly, the Sensex is up by a good number in the morning trade. As we gear up to the RBI announcement, an understanding of the key policy rates will be in order. There we go.