RBI keeps key interest rate as it is
Source :NewsBharati   Date :05-Dec-2018

Mumbai, Dec 5: Reserve Bank of India today announced its fifth bi-monthly monetary policy review of the current financial year. The six-member Monetary Policy Committee, headed by RBI Governor Urjit Patel, began its three-day meeting on Monday.

The key rate remains unchanged at 6.5 percent. This is for the second time in a row that the central bank did not tinker with the interest rate.

"The decision of the Monetary Policy Committee is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of +/-2 percent while supporting growth," RBI said.

While the decision on keeping the policy rate unchanged was unanimous, Ravindra H Dholakia voted to change the stance to neutral.

The Reserve Bank Wednesday lowered retail inflation projection in the range of 2.7-3.2 percent for the second half of the current fiscal, citing normal monsoon and moderate food prices