Fifth Bi-monthly Monetary Policy Statement, 2019-20 Resolution of the Monetary Policy Committee (MPC) Reserve Bank of India
On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (December 5, 2019) decided to:
• keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15 per cent.
Consequently, the reverse repo rate under the LAF remains unchanged at 4.90 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 5.40 per cent.
• The 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.
The Reserve Bank of India led monetary policy committee on Thursday unanimously voted to maintain the policy rates at 5.15% against market expectations of a cut in repo rate by 25 basis points. The MPC decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the
Target, hinting that future rate cut cannot be ruled out. The policy members also upwardly revised H2FY19 CPI forecasts to 5.1-4.7% against an earlier range of 3.5-3.7% in the earlier policy even as it downwardly revises the real GDP growth for 2019-2020 to 5% from 6% earlier.
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