India’s RBI keeps interest rates on hold as inflation increases – Gulf Today

India’s RBI keeps interest rates on hold as inflation increases – Gulf Today

Economists polled by Reuters had expected the RBI's Monetary Policy Committee (MPC) to leave its key repo rate unchanged at 5.15% and reverse repo rate at 4.9%.. All six members of the MPC voted to keep rates steady and retain the accommodative policy stance.. The central bank lowered its growth forecast for the first half of the upcoming fiscal year to 5.5%-6%, from its December projection of 5.9%-6.3%.. It forecast inflation in the ongoing fourth quarter of fiscal 2020 to hit 6.5%, and then move lower in a 5.4%-5% range in the first half of the upcoming fiscal year, which is still up from its prior projection of 4%-3.8% for that period.. Indian markets closed higher for the fourth straight day on Thursday after the RBI's Monetary Policy Committee said the policy space for future action is "available" indicating a rate cut in the near term.. Along expected lines, the central bank decided to keep the repo rate unchanged at 5.15 per cent in its February policy meeting, citing elevated levels of inflation..