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The Reserve Bank of India on Wednesday left the key rates unchanged in line with its stance "of calibrated tightening of monetary policy".
Accordingly, the policy repo rate remains unchanged at 6.5 per cent with the reverse repo rate at 6.25 per cent. The decision was taken at the fifth bi-monthly meeting of the Monetary Policy Committee.
While the decision on keeping the policy rate unchanged was unanimous, Ravindra H Dholakia voted to change the stance to neutral.
“The projected inflation path remains unchanged after adjusting for the HRA impact of central government employees as this impact dissipates completely from December 2018 onwards," the resolution of the MPC said on Wednesday, adding that although recent food inflation prints have surprised on the downside and prices of petroleum products have softened considerably, it is important to monitor their evolution closely and allow heightened short-term uncertainties to be resolved by incoming data.
GDP growth for 2018-19 has been projected at 7.4 per cent (7.2-7.3 per cent in second half) as in the October policy, and for first half of 2019-20 at 7.5 per cent, with risks somewhat to the downside, it further said.
The MPC has decided to continue the practice of a three-day meeting format for the Sixth Bi-monthly Monetary Policy Statement 2018-19 commencing on February 5, 2019.
(With additional inputs from PTI)
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