The Reserve bank of  India (RBI) on friday  kept the repo rate under  the liduidity adjustment facility (LAF) unchanged at 6.5 percent and 6.25 percent ,respectively.

The six -member monetary policy committee (MPC) after its meeting said the decision was taken on the basis of a 5.1 majority.

The decision of the MPC is consistent with the stance of calibrated tightening of monetary policy index (CPI) inflation of 4 percent  while supporting growth,”a statement from RBI read.

The MPC said the GDP is expected to grow by 7.4 percent in 2018-19,up from 6.7 percent in the previous fiscal .It  further noted that influtation will clock 3.8 percent in the  third quater of 2018-19 percent in the next quarter of the current fiscal .

As per the RBI panel, the hike in minimum support price (MSP) for kharif crops ,rising crude oil prices and uncertain global financial enviroment may hamper inflation .

After the last policy meeting, the RBI in August had hikedd the repo rate by 25 basis points to 6.5 percent, while maintaining a neutral stance on the stability in the market.