RBI maintained status quo on rates, citing higher CPI inflation. Repo rate is now at 5.15%.
GDP growth has been revised lower to 5% for 2019-20 and inflation has been revised upwards to 4.7 to 5.1% for Oct-March period.
RBI Governor said that rate transmission has varied from 44 bps to 135 bps in various segments as against RBI rate cut of 135 bps
this year. RBI Governor said that MPC would like to assess the impact of recent monetary policy decisions and Govt decisions on
demand and inflation. While economy has slowed, there is optimism on rabi agri season due to good north east monsoon. Global
economy has also stabilised and Crude prices have steadied. Capital inflows is robust and trade deficit is lower.
RBI is also waiting for 2020 Feb budget and further macro economic developments. It has left monetary policy in accomodative
stance, implying space for further rate cuts next year. RBI Governor has also added that it is better to cut rates when its impact can
be forceful.
USDINR is at 71.58. Indian Equity indices are trading flat.
In regulatory changes, RBI has dispensed off with underlying for FX transactions upto US D 10 mn.