New Delhi, December 05: The monetary policy committee of Reserve Bank of India (RBI) today kept its repo rate, for the short term, unchanged at 6.5 percent. The RBI had raised the repo rate by 50 base points in August this year. Softening of Inflation, fall in crude oil prices and rebound in the rupee from record lows prompted the central bank not to change the repo rate, the rate at which the RBI lends money to commercial banks under the liquidity adjustment facility (LAF). It is for the second time in the year that the RBI did not change the repo rate. India's GDP Growth Rate Peaked to 10.8% Under Manmohan Singh's Tenure in 2006-07, Shows Revised Data.
Similarly, the reverse repo rate under the LAF will remain unchanged at 6.25 percent. Meanwhile, the marginal standing facility (MSF) rate and the Bank Rate will remain at 6.75 percent. The RBI Governor Urjit Patel kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability (NDTL).
Data released last week by the Central Statistics Office (CSO) showed that the gross domestic product (GDP) grew at 7.1 percent in the period between July-September dropping from 8.2 percent in the previous quarter due to various reasons, including high fuel prices, depreciating the value of the rupee against the US dollar.
The gross value added (GVA) at 2011-12 prices, grew at 6.9 percent in the period between July-September, which is lower than the previous quarter. If we talk about the sector-wise growth, the manufacturing sector grew at 7.4 percent in the present quarter, which is almost half as compared 13.5 percent in the previous quarter. There is also a dip in the growth of the agriculture sector by 1.5 percent. In the last quarter, it was 5.3 percent.