RBI keeps benchmark interest rate unchanged at 5.15%

Mumbai: The Reserve Bank of India on Thursday kept the key policy rate unchanged at 5.15 percent and decided to continue with its accommodative stance to support the economy.

The central bank also revised GDP growth downwards to 5 percent for 2019-20 from 6.1 percent projected in its October policy.

“The Monetary Policy Committee recognizes that there is monetary policy space for future action. However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture,” the RBI said in its fifth bi-monthly monetary policy for this fiscal.

The panel decided to continue with the accommodative stance as long as it is necessary to revive growth while ensuring that inflation remains within the target.

All the six members of the MPC voted in favor of a rate pause.

The CPI inflation projection is revised upwards to 5.1-4.7 percent for H2 FY20 and 4-3.8 percent for H1 FY21.

Between February and October 2019, the RBI has reduced the repo rate by 135 basis points.