RBI holds rate, cuts H1 inflation forecast to 4.7-5.1% on lower food prices

RBI lowered its inflation projection sharply from previous forecasts, but flagged risks on the upside on revised numbers

The Reserve Bank of India (RBI) on Thursday adopted a remarkably dovish tone, surprising analysts who were expecting the firming up of rates in the medium term, even as one of the six members in the Monetary Policy Committee (MPC) voted for a hike in an otherwise status quo policy. 

After the first bi-monthly monetary policy for 2018-19, the repo rate remained at 6 per cent. RBI Executive Director Michael Patra voted for a 25 basis points hike, but other five members, including RBI Governor Urjit Patel favoured a pause. 

The central bank lowered its inflation projection sharply from previous forecasts, but