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Inflation shock RBI's big worry, rate unchanged
The Morning Standard
|October 07, 2023
Concern over extra liquidity in the banking system; benchmark repo rate kept at 6.5%
THE Reserve Bank of India (RBI) on Friday kept the benchmark repo rate unchanged at 6.5% as expected, but the uncertainty around inflation weighed on its policy stance, which was aggressive towards both rates and liquidity.
Repo rate is the rate of interest RBI charges banks when the latter borrows money from the central bank to make up for shortage of funds.
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