The Reserve Bank of India kept its current monetary policy unchanged at its April meeting, with interest rates kept at 6.0% and interest on deposits at 5.75%. The main points of the monetary policy statement were as follows:
- We retain neutral approach.
- Five members out of six voted in favor of no change.
- Member Patra saw the need to raise the interest rate by 25 basis points.
- There is a rising risk of inflation.
- Inflation is expected to stabilize near the range of 4.7% to 5.1% in the first half of 2018/2019.
- Oil price volatility raises sweet doubts about inflation growth in the near term.
