The six-member MPC also kept policy stance unchanged at 'accommodative' for "as long as necessary" to revive growth
The only way to boost demand may be lowering interest rates to boost consumption, analysts said
Anarock Chairman Anuj Puri said RBI's move will push credit flow into all industries reeling under the impact of the coronavirus
The finance ministry has been nudging public sector banks to pass the whole repo rate cuts to retail loans for pushing consumption
The RBI said it will place the resolution of the MPC on its website before noon on February 6
Soft spoken, articulate, and celebrated for his disciplined and original research work, Patra is known to take hawkish stance who constantly prefers rate hikes
Since the scope of supporting growth through fiscal and monetary policy is fairly limited, economic revival will ultimately depend on policy reforms
The 6-member Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted to hold the key repo rate at 5.15% and reverse repo rate at 4.90%
GDP growth forecast for FY20 has been revised downwards from 6.1 per cent in the October policy to 5 per cent
Citing geo-political uncertainties and elevated food prices, the RBI revised inflation projection upward to 3.4 per cent for Q2FY20, while projections were retained at 3.5-3.7 per cent for H2FY20
The central bank is likely to cut repo rate for the fifth time in a row
Wait and watch may be a prudent approach
One of them is how reliable the model is that the RBI uses to forecast inflation
No material risk of second-round inflation effects from HRA hikes by the 7th Pay Commision