RBI keeps repo rate unchanged at 5.15%, accommodative stance remains. FY21 GDP growth pegged at 6%.
Holding Your Horses (For Now)
The RBI has left the repo rate unchanged at 5.15%, as was widely accepted, while it has decided to maintain its accommodative stance. This was announced following the three-day meeting of the six-member Monetary Policy Committee (MPC). All six members voted in favour of maintaining the status quo due to rising inflationary rate and slow transmission of the already announced rate cuts.
The RBI cut GDP growth forecast for first half of FY21 by 30-40 basis points from 5.9%-6.3% to 5.5%-6%. The FY21 GDP growth forecast is at 6%, while for FY20 it is at 5% with 4.6%-5.5% for second half of FY20. Moneycontrol
The Central Bank also announced several measures to boost realty, housing, MSME and NBFC segments. You can read the RBI Governor's Sixth Bi-monthly Monetary Policy Statement, 2019-20 here.
How well do you know the top news of the last week? Have a go at our TheWeekThatWas Quiz and test your wits.