The Reserve Bank of India on Thursday cut the gross domestic product (GDP) growth forecast for the current fiscal to 5% from 6.1%.
The central bank did leave the policy rate unchanged at 5.15%. Between February and October 2019, the RBI has reduced repo rate by 135 basis points.
“The Monetary Policy Committee recognises that there is monetary policy space for future action. However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture,” the RBI said in its fifth bi-monthly monetary policy for this fiscal.
All the six members of the MPC voted in favour of a rate pause.