RBI has kept repo rate unchanged at 6% and reverse repo rate unchanged at 5.75%. The Monetary Policy Committee (MPC) has kept its neutral stance unchanged.
MPC votes 5:1 in favor of an unchanged policy rate. Micheal Patra dissented. IND-AS for banks has been postponed by one year. CPI inflation forecast cut for first half of FY19 to 4.7-5.1% from 5.1-5.6% and for second half to 4.4% from 4.5-4.6%.
April-June GDP growth seen at 7.1%, July-September GDP growth seen at 7.4%. Real GDP growth in FY19 seen at 7.4%, as against 6.6% in FY18. Bond yields have fallen after the Monetary Policy Committee’s announcement.
RBI says models suggest FY20 real GDP growth will range from 7.4% to 7.9%.