RBI Monetary Policy: Five key announcements you should know

The Reserve Bank of India on Thursday kept the benchmark rate of interest unchanged at 5.15 percent in view of the uptick in inflation. The RBI MPC considers CPI inflation for its monetary policy actions and inflation is expected to be within the comfort zone of the MPC in the next fiscal. "Economic activity remains subdued and the few indicators that have moved up recently are yet to gain traction in a more broad-based manner. Given the evolving growth-inflation dynamics, the MPC felt it appropriate to maintain the status quo? the Monetary Policy Committee (MPC) said.

Here are five key announcements made by RBI -

-- The repo rate retained at 5.15%

--Reverse repo rate retained at 4.90%

--The MPC unanimous on maintaining the credit policy stance

--FY2i GDP growth estimates at 6%

--HY GDP growth estimates between 5.5-6%

देखिए सबसे आसान भाषा में #CreditPolicy का सटीक विश्लेषण @AnilSinghvi_ और बाजार के दिग्गजों के साथ। #RBIPolicy https://t.co/LRTpPlWdHD

— Zee Business (@ZeeBusiness) February 6, 2020

RBI monetary policy committee met during February 4-6 for its sixth bi-monthly Monetary Policy Statement for 2019-20. 

Monetary policy is the macroeconomic policy laid down by the RBI which constitutes the management of money supply and interest rates. The central bank tweaks interest rates to achieve macroeconomic objectives such as liquidity, consumption, and inflation.

See Zee Business Live TV Streaming Below

RBI's commentary is on at least 40 indicators and is data-rich.