In the last MPC meet benchmark interest rate was cut by 0.25 per cent to 5.15 pc from 5.40 pc amid low inflation, faltering economic growth.
Mumbai: The six-member Monetary Policy Commitee (MPC), chaired by RBI Governor Shaktikanta Das, started its three-day discussions from 4th Februray, 2020, for decision on key interest rates amid low inflation, faltering economic growth and uncertain global scenario.
The MPC was meeting for its sixth bi-monthly Monetary Policy Statement for the year 2019-20. Reserve Bank of India has decided to keep the repo rate same at 5.15 per cent.
All six members of Monetary Policy Committee vote in favour of maintaining status quo on interest rate.
The central bank retained GDP growth at 5 per cent for 2019-20 and pegged it at 6 per cent for the next fiscal.
The RBI anticipates inflation to remain elevated in short-run, and also said that overall inflation outlook remains highly uncertain.
"Economic activity remains subdued and the few indicators that have moved up recently are yet to gain traction in a more broad-based manner. Given the evolving growth-inflation dynamics, the MPC felt it appropriate to maintain status quo,” the Monetary Policy Committee (MPC) said.
Between February and October 2019, the RBI had reduced repo rate by 135 basis points.
(With PTI inputs)