Ahead of the policy, opinion was divided on whether RBI would cut rates and economists had cited many reasons for the central bank to stay put; the budget was expansionary and easing would put pressure on prices, RBI's policy stance of "calibrated tightening" and the fact that banks needed to attract Rs 20 lakh crore of deposits to fund credit needs according to a Crisil report. The reverse repo rate stands adjusted to 6.0 per cent, and the marginal standing facility rate and the bank rate has been kept 6.5 per cent.
The central bank also changed its monetary policy stance - a key signalling indicator to the markets -to "neutral" from "calibrated tightening". This is the first rate cut announced by the MPC since August 2017.
The rate cut continues a trend in which some major central banks, anxious about slowing global growth and helped by cooling inflation, have moved firmly away from last year's tightening moves or tones. With headline inflation around 4 percent, RBI may use policy space to boost growth. Most polled respondents expected the central bank to only change the stance, to neutral.
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Pope Francis gestures during a farewell ceremony before leaving Abu Dhabi , United Arab Emirates February 5, 2019. Francis Assisi - the pope's namesake - and the Sultan of Egypt Malek al-Kamel, in 1219.
"Investment activity is recovering but supported mainly by public spending on infrastructure", the MPC said in a statement. The next meeting of the MPC is scheduled from April 2 to 4.
Three of the five economists in CNBC-TV18's MPC expected the RBI to hold the repo rate at 6.50 percent and have asked for a neutral stance.
Some economists said Das, a seasoned bureaucrat, is likely to promote growth and aid the fragile financial sector, as inflation is comfortable at present, in December dropping to an 18-month low of 2.19 percent. The governor, however triggered concerns of back-tracking on the central bank's move to peg retail loans to an external benchmark from April 2019, by referring to RBI's earlier circular as a discussion paper.
Injured Guptill out of India T20 series
The match will be broadcast on the Star Sports Network on Wednesday (February 5) from 12:30 PM onwards. Part-time spinners Kedar Jadhav and Krunal Pandya might come into the picture as well.
The Reserve Bank of India (RBI) on Thursday retained the country's gross domestic product (GDP) forecast for FY20 at 7.4 per cent. Addressing the media on Monetary Policy, RBI Governor Shaktikanta Das said GDP projection for 2019-20 is 7.4 per cent while the inflation rate is estimated at 3.2-3.4 per cent in the first half of the year 2019-20 and 3.9 per cent in the third quarter of 2019-20.
The Reserve Bank of India (RBI) Governor Shaktikanta Das arrives to attend a news conference after a monetary policy review in Mumbai, February 7, 2019. "Going by the guidance, there is room for a further rate cut".
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If you're starting to get a little tired over Fortnite or PUBG , this may be the alternative battle royale game for you. Respawn hinted players would need to play off the strengths of different Legends when teaming up for the best results.