The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has kept the policy repo rate unchanged at 6 per cent, as widely expected. The RBI retained reverse repo at 5.75 per cent, with marginal standing facility (MSF) and bank rate at 6.25 per cent. The projected CPI inflation for 2018-19 has been revised to 4.7-5.1 per cent in H1 2018-19 and 4.4 per cent in H2, including the HRA impact for central government employees, with risks tilted to the upside. With the sharp moderation in food prices in February-March, the inflation trajectory in first half of 2018-19 is expected to be lower than the projection in the February statement.

(Economic Times)