It was RBI's fifth bi-monthly monetary policy meet of financial year 2018-19.
Repo rate is the rate at which the central bank lends money to commercial banks in case of a fund shortage, while the reverse repo rate refers to the rate at which the central bank borrows money from commercial banks to suck liquidity out of the system. SLR is the proportion of its net demand and time liabilities that a commercial banks need to maintain in liquid assets like gold and government papers before providing credit to their own customers.
The committee maintained the calibrated tightening stance.
Most analysts had expected RBI
to hold rates to support the economy, even as most of them had predicted a hike just over a month ago.
A sharp decline in crude oil prices and the recent recovery in the value of the rupee vis-a-vis the US dollar have provided the much-needed relief to the economy. After hitting a high of $86/barrel in October, the oil prices have retreated 29 per cent, mainly because supply of crude oil has outstripped its demand. As a result, the domestic currency has declined 5.34 per cent (as of Tuesday's close).
The next policy is scheduled to be announced on February 7, 2019.