The RBI also revised GDP growth downwards to 5 per cent for 2019-20 from 6.1 per cent projected in its October policy
The Reserve Bank of India on Thursday kept the key policy rate unchanged at 5.15 per cent and decided to continue with its accommodative stance to support the economy.
The central bank also revised GDP growth downwards to 5 per cent for 2019-20 from 6.1 per cent projected in its October policy.
Following are the highlights of the RBI’s 5th bi-monthly monetary policy statement of 2019-20:
– Repo rate or short-term lending rate unchanged at 5.15 pc;
– GDP growth forecast lowered for current fiscal to 5 pc from 6.1 pc earlier;
– Various high frequency indicators suggest demand conditions remained weak;
– RBI continues with accommodative monetary stance to revive growth;
– Recognises that there is monetary policy space for future action;
– Retains retail inflation projection for second half of year raised to 5.1-4.7 pc;
– RBI notes monetary transmission to improve going forward;
– Foreign exchange reserves stood at USD 451.7 bn on Dec 3, up USD 38.8 bn over March-end 2019;
– All members of rate-setting Monetary Policy Committee (MPC) voted for rate pause;
-Next monetary policy review meet scheduled during February 4-6, 2020.
Prasanta Patnaik