Reserve Bank keeps repo rate unchanged at 5.15 per cent

The central bank also revised GDP growth downwards to 5 per cent for 2019-20 from 6.1 per cent projected in its October policy.

Update: 2019-12-05 06:37 GMT
The barely two-year-old P2P lending market is estimated to be valued at more than Rs 300 crore. Since 2017, the Reserve Bank of India (RBI) has given approval to as many as 20 P2P firms. Four of these firms are based in Hyderabad.

Mumbai: The Reserve Bank of India on Thursday kept the key policy rate unchanged at 5.15 per cent and decided to continue with its accommodative stance to support the economy.

The central bank also revised GDP growth downwards to 5 per cent for 2019-20 from 6.1 per cent projected in its October policy.

"The Monetary Policy Committee recognises that there is monetary policy space for future action. However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture," the RBI said in its fifth bi-monthly monetary policy for this fiscal.

The panel decided to continue with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.

All the six members of the MPC voted in favour of a rate pause.

The CPI inflation projection is revised upwards to 5.1-4.7 per cent for H2 FY20 and 4-3.8 per cent for H1 FY21.

Between February and October 2019, the RBI has reduced repo rate by 135 basis points.

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