RBI's monetary policy committee cuts repo
rates by 25 basis points to 5.15 %.
RBI has said that there is space to cut
repo rates further.
The reverse repo rate has been reduced to
4.9 %, and the bank rate stands at 5.40%.
Real GDP growth for 2019-20 has
been revised downwards from 6.9 % in the August policy to 6.1 %. RBI has
said that various high frequency indicators suggest that domestic demand
conditions have remained weak.
The MPC
noted that the negative output gap has widened further. While the
recent measures announced by the government are likely to help strengthen
private consumption and spur private investment activity, MPC said that
the continuing slowdown warrants intensified efforts to restore the growth
momentum.
The CPI
inflation projection is revised slightly upwards to 3.4 % for Q2:2019-20 from
3.1 % projection earlier.
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