The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) kept the repo rate unchanged in the December policy. With no change this time, the repo rate continues to stand at 5.15 percent.
All six members of the Monetary Policy Committee voted in favour of the decision.
The central bank has maintained its policy stance at “accommodative”, while the reverse repo rate has been maintained at 4.90 percent.
The RBI has cut the FY20 growth forecast sharply to 5 percent from the 6.1 percent projected earlier. While the 2H FY20 GDP growth is seen at 4.9-5.5 percent versus the 6.6-7.2 percent projected earlier. 1H FY21 GDP growth is predicted at 5.9 percent to 6.3 percent.
The CPI inflation forecast for 2H FY20 has been revised to 5.1-4.7 percent from the 3.5-3.7 percent earlier. The CPI inflation forecast for 1H FY21 is 4.0-3.8 percent "with risk evenly balanced".
CNBC-TV18's Latha Venkatesh explains what the RBI's December policy means for the common man...