RBI KEEPS REPO RATE AT 6.5%, CUTS INFLATION FORECAST |
In a significant move, Reserve Bank of India`s Monetary Policy Committee (MPC), on the basis of its assessment of the current and evolving macroeconomic situation in India, has decided to keep the Policy Repo Rate under the Liquidity Adjustment Facility (LAF) unchanged at 6.5 per cent. The MPC has, however, retained its stance of `calibrated tightening`. The RBI has also decided to reduce the Statutory Liquidity Ratio from existing 19.5% to 18.0% in six quarterly instalments beginning January 2019. The GDP growth projection for 2018-19 is retained at 7.4 percent as in the Fourth Bi-monthly Resolution in October, 2018. Projected inflation for 2018-19 and Q1:2019-20 have been substantially revised down from the October resolution.
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