RBI keeps key repo rate unchanged, lowers inflation forecast

RBI keeps key repo rate unchanged, lowers inflation forecast

RBI keeps key interest rates unchanged but softens its hawkish stance owing to fall in retail inflation to a record low and lower-than-expected economic growth

 The repo rate, at which the central bank infuses liquidity in the banking system, has been kept unchanged at 6.25%, the RBI lowered its inflation forecast for the current fiscal. The MPC has projected headline inflation at 2.0-3.5% in the first half of the year and 3.5-4.5% in the second half. This is seen as an indication that the RBI may be accommodative on the future course of rates in a bid to revive economic growth.