Highlights of the RBI monetary policy

MUMBAI: The Reserve Bank of India On Thursday, the key policy rate remained unchanged at 5.15 percent and decided to continue its accommodative stance to support the economy.

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

The following are the highlights of the RBI 5th fortnightly monetary policy 2019-20 statement: -

* Repurchase rate or short-term loan rate without changes at 5.15%;

* The GDP growth forecast was reduced for the current fiscal year to 5% from the previous 6.1%;

* Several high frequency indicators suggest that demand conditions remained weak;

* RBI continues with accommodative monetary stance to revive growth;

* Recognises that there is monetary policy space for future action;

* Maintains the projection of retail inflation for the second half of the year to 5.1-4.7%;

* RBI notes monetary transmission to improve going forward;

* Currency reserves stood at USD 451.7 billion on December 3, an increase of USD 38.8 billion at the end of March 2019;

* All rate setting members Monetary Policy Committee (MPC) voted for the rate pause;

* Next monetary policy review meet scheduled during February 4-6, 2020.