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RBI leaves repo rate unchanged at 6.5% second-time in row

Aakanksha Raghuvanshi


RBI leaves repo rate unchanged at 6.5% second-time in row

05 Dec 2018: RBI leaves repo rate unchanged at 6.5% second-time in row

The Reserve Bank of India today left the repo rate unchanged while maintaining the stance of "calibrated tightening" of policy. The key rate remains unchanged at 6.5%.

RBI didn't change the interest rate for the second time in a row.

While the decision on keeping the policy rate unchanged was unanimous, Monetary Policy Committee member Ravindra Dholakia voted to change the stance to neutral.

Forecast: GDP growth projection for FY19 retained at 7.4%

"The decision of the Monetary Policy Committee is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/-2% while supporting growth," RBI said.

The Urjit Patel-governed central bank also retained the GDP growth projection for FY19 at 7.4%.

Fact: Inflation in second half of current fiscal projected at 2.7-3.2%

For the first half of the 2019-20 fiscal year, the Gross Domestic Product (GDP) is been projected at 7.5%. The Reserve Bank of India said that the inflation in the second half of the current fiscal is projected at 2.7-3.2%.