RBI MPC Meet LIVE: The government has tasked the Reserve Bank to ensure consumer price index (CPI)-based retail inflation remains at 4 per cent with a margin of 2 per cent on either side.
RBI Governor Sanjay Malhotra on Friday said that the Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 5.25 per cent and to maintain a neutral stance. Malhotra said that the focus will remain on balancing inflation control with growth support. Announcing the sixth and final bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has decided to retain the short-term lending rate or repo rate at 5.25 per cent with a neutral stance.ย The rate cut pause comes on the back of the CPI-based headline retail inflation ruling below the 2 per cent lower band mandated by the government for the last four months.
The three-day meeting is held in the backdrop of the growth-focused Union Budget and the announcement of the India-US trade deal, which lifted market sentiments. Experts were of the view that the RBI has already reduced the key short-term lending rate (repo) by 125 basis points since last February, and may go for status quo on rates, as there are no pressing concerns on either growth or inflation fronts.
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