RBI Monetary Policy December 2019 Highlights: The Reserve Bank of India (RBI) on Thursday kept its repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15 per cent, while maintaining an “accommodative stance”. This is the first bi-monthly monetary meeting this year in which the repo rate has been kept unchanged.
The central bank had been cutting the key interest rates at every MPC meeting since Shaktikanta Das took over as the Governor of RBI last December. In the five reductions so far this year, the interest rates have been reduced by a total of 135 basis points on concerns that growth momentum is slowing down and to boost liquidity in the economy.
RBI has also cut the GDP growth forecast for 2019-20 to 5 per cent from 6.1 per cent in its October meeting.