Not Changing the Repo Rate Is Profitable for country’s financial system : Arundhati Bhattacharya
New Delhi : The State Bank of India (SBI) chairman Arundhati Bhattacharya today said,” in its monetary policy, it is a commendable step by RBI not to make any changes in the repo rate. From this proposed initiatives step of RBI, it will enhance the efficiency of the country’s financial system.
In its monetary policy review on Thursday, the RBI kept its repo rate unchanged at 6.25 percent, but made changes in the reverse repo rate at six percent after all six members of the Monetary Policy Committee (MPC) voted in favour of the decision.
SBI chairman said, that, “The RBI policy to keep the repo rate on hold was on expected lines, even though the reverse repo rate was hiked to six percent. Elsewhere on the developmental and regulatory policies front, the RBI has announced a number of measures, notably, substitution of collateral under the LAF, allowing the banks to invest in the REITs and financial literacy. All these will go a long way in improving the financial system.