NEW DELHI : Upturning Centre’s claim of upward mobility, the Reserve Bank of India (RBI) today acknowledged the GDP growth rate for ongoing fiscal as dismal at 5 percent. The apex bank also expressed worry over consumer price inflation which could rise to an average of 4.7% - 5.1 in the second half of 2019-20, it said.
Against such growth-inflation dynamics, the RBI on Friday kept the repo rate – at which it lends to banks - unchanged, after reducing it five consecutive times in 2019.
The Monetary Policy Committee(MPC) said the earlier cuts are yet to be transmitted down and results analysed.
The panel also slashed growth projection for the 2019-20 to 5% from an earlier 6.1% during October policy.
The status quo on repo rate came as a disappointment to the markets, where another rate cut was hoped to ease the liquidity crunch.
