New Delhi: The Reserve Bank of India (RBI) in its fifth bi-monthly Monetary Policy has kept the policy repo rate unchanged at 5.15 per cent.
The six-member Monetary Policy Committee (MPC) headed by Governor Shaktikanta Das unanimously voted for a status quo policy. The reverse credit policy has also maintained the reverse repo rate at 4.90 per cent and the marginal standing facility rate and Bank Rate at 5.40 per cent.
The policy statement says the MPC decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target. These decisions are in consonance with the objective of achieving the medium-term target for consumer price index inflation of 4 per cent while supporting growth.
The RBI said since the MPC’s meeting in October 2019, global economic activity has remained subdued, though some signs of resilience are becoming visible. Crude oil prices have moved in a narrow range reflecting changing sentiments relating to progress in US-China trade talks.
Turning to the growth outlook, real GDP growth for 2019-20 has been revised downwards from 6.1 per cent in the October policy to 5.0 per cent.
The MPC noted that the forthcoming union budget will provide better insight into further measures to be undertaken by the Government and their impact on growth.