RBI holds repo rate at 5.15%. Also reduces growth forecast for 2019-20 to 5% from 6.1%.
Caught By Surprise: In a rather unexpected move, the Monetary Policy Committee of the Reserve Bank of India (RBI) has decided to keep repo rate unchanged at 5.15% and said that it will maintain an “accommodative stance as long as it is necessary" while ensuring that inflation remains within the target. The six members of the monetary policy committee (MPC) were unanimous in their decision to hold rates.
FYI: The RBI has cut policy rates by 135 basis points so far in 2019. Livemint
Read RBI's official press release here.
RBI also sharply reduced its growth forecast for 2019-20 to 5% from 6.1%, with the committee noting that a delay in revival of domestic demand, further slowdown in global economic activity and geo-political tensions could pose downside risks to growth. ET Policy
For Some Perspective: India’s economy grew at 4.5% in July-September, the weakest pace in more than 6 years.
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