Press Statement on Fourth Bi-monthly Monetary Policy Statement, 2018-19 Resolution of the Monetary Policy Committee (MPC) Reserve Bank of India

The Monetary Policy Committee (MPC) in its fourth bi-monthly statement, issued on 05.10.2018, on the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent.

The GDP growth projection for 2018-19 is retained at 7.4 per cent as in the August resolution. The projections of inflation for 2018-19 and Q1:2019-20 have been revised downwards from the August resolution.

The decision of the MPC is in consonance with the Government’s assessment of inflation and growth going forward and for achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent., while supporting growth.

The Government welcomes the MPC’s assessment and notes its decision to maintain the Policy Rate.