RBI MPC announced on 5th Dec 2019 the Fifth Bi-Monthly Monetary Policy Review.The Reserve Bank of India on Thursday kept the key policy rate unchanged at 5.15 per cent and decided to continue with its accommodative stance to support the economy, PTI reported.
The central bank also revised GDP growth downwards to 5 per cent for 2019-20 from 6.1 per cent projected in its October policy. "The Monetary Policy Committee recognises 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.
Following are the Key Highlights of the Monetary Policy:
- MPC unanimously votes for status quo on repo rate
- Stance to remain accomodative as long as required: MPC
- FY20 real GDP growth projection lowered to 5% from 6.1%
- MPC sees scope for rate easing in the future
- MPC expects inflation to rise in the near term
- Delay in demand revival is a key downside risk to GDP
- MPC sees need to address impediments holding back investments
- October CPI print was much higher than expected
- Fall in deposit rate augurs well for loan rate transmission
- October-March 2020 CPI inflation seen at 4.7-5.1%
- April-Sept 2020 CPI inflation seen 3.8-4%
- Oct-March GDP growth seen at 4.9-5.5%
- Fall in deposit rate augurs well for rate transmission
The next meeting of the MPC is scheduled during February 4-6, 2020.
Please click on the following link for Fifth Bi-monthly Monetary Policy Statement, 2019-20 Resolution of the Monetary Policy Committee (MPC) Reserve Bank of India
Please click on the following link for : Statement by Governor - Fifth Bi-monthly Monetary Policy, 2019-20, December 5, 2019
Source: rbi.org.in & ET