The Reserve Bank left its benchmark lending rate unchanged at 6.25 per cent today for the third policy review in a row citing upside risk to inflation.
However, it has increased the reverse repo rate at which it pays to lenders by 0.25 per cent to 6 per cent, narrowing the policy rate corridor.
Given the upside risks to inflation and excess liquidity in the system, the repo rate has been retained at 6.25 per cent but the reverse repo has been revised upwards.
The Marginal Standing Facility has been revised downwards (rpt) downwards by 0.25 per cent to 6.5 per cent, the central bank said in the first bi-monthly monetary policy review of 2017-18.
The central bank said the policy decisions are unanimous.
On the basis of gross value add, Reserve Bank of India sees the economy accelerating to 7.4 per cent in the current fiscal, up from 6.7 per cent in 2016-17.