World Economy

RBI Leaves Rate Unchanged

RBI Leaves Rate UnchangedRBI Leaves Rate Unchanged

Faced with an uptick in inflation, Raghuram Rajan on Tuesday left interest rates unchanged at his final policy review meeting as Reserve Bank of India governor, PTI reported. Rajan left the repurchase, or repo, rate unchanged at 6.5% as retail inflation for the month of June headed to 5.77%, driven in large part by a spike in food inflation. The Cash Reserve Ratio was also left unchanged at 4%. As a result, the reverse repo rate under the Liquidity Adjustment Facility remains unchanged at 6% while the marginal standing facility rate and the Bank Rate is at 7%.