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The Reserve Bank of India has maintained a status quo for the monetary policy. It has kept Repo rate, Reverse repo rate and MSF unchanged.
Repo rate, which is the rate at which banks borrow from the RBI is unchanged at 6%. Reverse repo rate, the rate at which RBI borrows from the commercial banks is at 5.75% and marginal standing facility (MSF) is at 6.25%. The cash reserve ratio too has been unchanged at 4%.
Further, as per experts, an increase in inflation rate in recent months, rise in prices of crude oil, cuts in GST rates, rising risk of fiscal slippages in the current financial year and the US Federal Reserve proposal to increase interest rate in December 12-13 policy review, prevented the RBI to go for a rate cut.
