RBI keeps repo rate unchaged at 6.5, Rupee goes lowest to breach 74
Mumbai, Oct 5 (IBNS) :The Reserve Bank of India (RBI) on Friday kept the repo rate (key lending rate) unchanged at 6.5 per cent while, maintaining its steady plummeting rate, rupee breached the 74-mark against US dollar for the first time.
The reverse repo rate or the rate at which RBI borrows from commercial banks also remained unchanged at 6.25 per cent.
According to media reports, the RBI's decision to maintain a status quo in the rep rate was in sharp contrast to the expectation of a hike by 25 basis points or 0.25 per cent to combat inflationary pressures arising from high oil prices and a weakening rupee.
The RBI had last raised interest rates in two successive policy reviews in August and June this year.
Rupee slipped to a record low 74.13 per dollar, down 55 paise from previous close 72.58 per dollar. It opened marginally lower in the early trade.
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