The Reserve Bank of India’s monetary policy committee (MPC) on Thursday slashed its GDP growth estimate but disappointed markets and borrowers by keeping its key policy rate unchanged after reducing it five consecutive times in 2019. It was widely expected that the central bank would reduce its repo rate -- at which it lends to banks -- by 25 basis points to a 10-year low of 4.9%.
The Reserve Bank of India’s monetary policy committee (MPC) on Thursday slashed its GDP growth estimate but disappointed markets and borrowers by keeping its key policy rate unchanged after reducing it five consecutive times in 2019. It was widely expected that the central bank would reduce its repo rate -- at which it lends to banks -- by 25 basis points to a 10-year low of 4.9%.
