Reserve Bank of India keeps key policy rate unchanged at 5.15 per cent
Mumbai: The six-member Monetary Policy Commitee (MPC),
chaired by RBI Governor Shaktikanta Das, started its three-day discussions from
4th Februray, 2020, for decision on key interest rates amid low inflation,
faltering economic growth and uncertain global scenario.
The MPC was meeting for its sixth bi-monthly Monetary Policy
Statement for the year 2019-20. Reserve Bank of India has decided to keep the
repo rate same at 5.15 per cent.
All six members of Monetary Policy Committee vote in favour
of maintaining status quo on interest rate.
The central bank retained GDP growth at 5 per cent for
2019-20 and pegged it at 6 per cent for the next fiscal.
The RBI anticipates inflation to remain elevated in
short-run, and also said that overall inflation outlook remains highly
“Economic activity remains subdued and the few indicators
that have moved up recently are yet to gain traction in a more broad-based
manner. Given the evolving growth-inflation dynamics, the MPC felt it
appropriate to maintain status quo,” the Monetary Policy Committee (MPC) said.
Between February and October 2019, the RBI had reduced repo
rate by 135 basis points.