Mumbai: The Reserve Bank of India reduced the repo rate by 25 bps to 5.15% on Friday to boost growth while keeping the policy stance accommodative.
“The MPC decided to continue with an accommodative stance as long as it is necessary to revive growth while ensuring inflation remains within the target range.
The RBI revised GDP growth for FY20 to 6.1% from 6.9% predicted in the last policy held in August.
All the six members voted in favour of a rate cut, the RBI said.
Highlights of RBI’s monetary policy statement
Repo rate or short-term lending rate reduced by 25 bps to 5.15%
It is fifth rate cut in 2019
GDP growth forecast lowered for current fiscal to 6.1% from 6.9%
RBI continues with its accommodative monetary stance to revive economic growth
Government stimulus measures to help strengthen private consumption and spur investments
Continuing slowdown warrants intensified efforts to restore growth momentum
Retains retail inflation projection for second half of year at 3.5-3.7%
RBI notes monetary transmission has been staggered and incomplete
Foreign exchange reserves stood at $434.6 bn on Oct 1, up $21.7 bn over March-end 2019
All members of Monetary Policy Committee (MPC) voted for rate cut
Next monetary policy review meet scheduled during December 3-5, 2019