In line with market expectation, the Reserve Bank of India (RBI) has kept the repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15% in its sixth Bi-Monthly Monetary Policy Statement 2019-20. 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%.
The Monetary Policy Committee (MPC) of RBI 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, GDP growth for 2020-21 is projected at 6.0% - in the range of 5.5-6.0% in H1 and 6.2% in Q3.
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