RBI keeps repo rate unchanged at 5.15 pc
Mumbai/IBNS: To fight inflation, the Reserve Bank of India (RBI) kept the repo rate unchanged at 5.15 per cent, according to the Bi-monthly Monetary Policy Statement of the central bank.
On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (Feb 6, 2020) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15 per cent.
Consequently, the reverse repo rate under the LAF remains unchanged at 4.90 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 5.40 per cent.
The MPC also 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 (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth, the RBI said.
The RBI said the first advance estimates (FAE) released by the National Statistical Office (NSO) on Jan 7, 2020 placed India’s real gross domestic product (GDP) growth for 2019-20 at 5.0 per cent.
In its January 31 release, the NSO revised real GDP growth for 2018-19 to 6.1 per cent from 6.8 per cent given in the provisional estimates of May 2019. On the supply side, growth of real gross value added (GVA) is estimated at 4.9 per cent in 2019-20 as compared with 6.0 per cent in 2018-19.
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