Revival in high-frequency indicators shows modest growth momentum recovery

Despite expectations of a moderation in inflation from the elevated level of 7.35% in Dec 2019, the RBI's MPC expects a hardening of prices of other food items, notably those of pulses and proteins

This was a “no-event policy” of the Reserve Bank of India (RBI) in terms of monetary measures, as the “status quo” and "continuation of accommodative stance" were in line with expectations.

The Monetary Policy Committee (MPC) of the RBI has kept the repo rate, as well as the reverse repo rate, under the liquidity adjustment facility (LAF), unchanged at 5.15 per cent and 4.9 per cent, respectively, and has also decided to continue with the accommodative stance, considering the need to revive growth and because the inflation rate conforms to the target.

The MPC has projected the GDP growth at