The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) chose at a meeting on Thursday to keep the interest rates unchanged in the wake of a rise in inflation, however stressed that there would be space for rate decrease.
This is the second straight policy evaluation conference where the rates have been kept unchanged. The RBI minimized the rates by 135 bps in between February and October 2019 prior to pushing the time out button in the December policy review.
Thursday’s decision was consentaneous among all six members of the MPC.
RBI Guv Shaktikanta Das acknowledged that the marketplace had factored in status quo. “While this decision might be on anticipated lines, and maybe widely discounted, it is necessary not to mark down the RBI,” he said. “It has to be remembered that the central bank has numerous instruments that can be deployed to address the challenges that the economy deals with in terms of the sluggishness in the growth momentum.”
The reserve bank took two m