- The MPC continued with its neutral stance on policy.
- Reverse Repo adjusts to 6.25% from 6%.
- MSF and Bank rate adjusts to 6.75%.
- FY19 GDP growth forecast retained at 7.4%
- The Central Bank indicated that Apr-Sep GDP growth is seen at 7.5%-7.6%
- Q1FY20 GDP growth seen at 7.5%
- CPI inflation projected at 5% for Q1FY20 with risks evenly balanced
- Apr-June CPI inflation seen at 5%
- Jul-Sept CPI inflation seen at 4.2%
- Oct-Mar CPI inflation seen at 4.8%
The RBI Governor highlighted that capital flows to emerging markets have declined with the rising dollar. Moreover, mounting trade tensions and tightening financial conditions have increased.
The Governor stressed the need to monitor inflation uncertainty in the coming months. The governor also took note that recent softening of commodity prices and GST rate cuts can moderate inflation.