Much against the street’s delight, Reserve Bank of India (RBI) in its mid-quarterly monetary policy review, left Cash reserve ratio (CRR) unchanged at 6%. However, the current repo and reverse repo rates of 8.50% and 7.50% respectively have also been retained by India’s central bank.
However, in a positive development, RBI reiterated its second quarter review guidance, which stated that, ‘based on the projected inflation trajectory, further rate hikes might not be warranted’.