RBI increases key lending rate; retains GDP growth for 2018-19 at 7.4 pc

RBI increases key lending rate; retains GDP growth for 2018-19 at 7.4 pc

RBI increases key lending rate; retains GDP growth for 2018-19 at 7.4 pc

The Reserve Bank of India (RBI) on Wednesday increased the key lending or repo rate by 25 basis points to 6.25 per cent as part of its second bi-monthly monetary policy statement for 2018-19. The repo (or repurchase) rate is the rate of interest which the RBI charges to lend short-term loans to commercial banks.

The reverse repo rate, under which the RBI borrows from banks, was adjusted to 6 per cent.

The apex bank, however, maintained a neutral stance in the policy statement and retained the GDP growth for 2018-19 at 7.4 per cent, reports said.

Farsana

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