RBI policy boost in low-inflation phase: Here's what data says

In line with market expectations, the monetary policy committee (MPC) decided to reduce the benchmark repo rate by 25 basis points last week, to 6 per cent (Chart 1). 

The nudge came from low levels of consumer price index (CPI) inflation, which remained below expectations. Though the core CPI inflation rate dropped but remained high at 5.3 per cent in February, headline CPI inflation remained low—rising a bit—to 2.6 per cent (Chart 2). 

The MPC expects low levels of inflation to continue for a long period. It revised projections downward to 2.9-3.0 per cent in H1 FY20 and 3.5-3.8 per