It also decided to keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL).
The RBI would continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and continue with daily one-day term repos and reverse repos to smooth liquidity.
Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.0 per cent.
Speaking at a media interaction post the policy announcement, the RBI Governor Raghuram Rajan said:
- To see pace of disinflationary Process before taking decision
- Risks from Imported Inflation Appear To be retreating
- Revises Mar-end CPI Inflation down to 6% from 8% earlier
- RBI keeps MSF & Bank rate unchanged at 9%
- Change in Monetary Policy stance now would be premature
- Inlflation aim post Jan 2016 may move towards 4% plus/minus 2%
- There is misconception among Corporates that RBI unconcerned W/Growth
- Not trying to manage long-term interest rates through OMOs
- Looking at years of sustainable growth
- RBI wants to be sure in 2016 that CPI target is met
- Certainly seeing disinflationary process
- Govt will decide on requests for changes in gold import duty scheme
- Scrapping of 80:20 gold import scheme a Govt decision
- RBI chief says don't intend to flip-flop on policy