The Reserve Bank of India (RBI), in its fifth Bi-Monthly Monetary Policy Statement 2019-20, has kept policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15%. Consequently, the reverse repo rate under the LAF remains unchanged at 4.90%, and the marginal standing facility (MSF) rate and the Bank Rate at 5.40%.This halt came after five consecutive cuts.
The Monetary Policy Committee (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. Besides, real GDP growth projection for 2019/20 revised down to 5% from 6.1% seen earlier.
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