Govt welcomes MPCs decision of keeping policy rate unchanged: DEA secretary
Garg said that MPC expects growth to accelerate in 2018-19 while inflation to converge back towards its target level in the second half of next fiscal year
Department of Economic Affairs Secretary Subhash Chandra Garg said the government welcomes the Monetary Policy Committee's (MPC's) decision to keep the Policy rate unchanged at 6%.
The MPC in its 6th bi-monthly statement, issued on February 7, updated its inflation and real GDP growth projections for this year and for 2018-19.
Garg said that MPC expects growth to accelerate in 2018-19, while inflation to converge back towards its target level in the second half of next fiscal year.
The Reserve Bank of India on February 7 did not change repo, the benchmark lending rate at which banks borrow from the central bank, and kept it at over six-year low of 6% as it was expected.
Wednesday’s status quo was third policy stance where RBI held rate since August 2017 when it had brought down the key lending rate by 25 basis points to 6% from 6.25%.
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