Why RBI's MPC decided to halt easing of repo rate

Why RBI's MPC decided to halt easing of repo rate

MPC wants to have a greater clarity on nature of fiscal measures Modi government is planning to take in Union Budget 2020-21 next year; it also wants to see a greater transmission key lending rates

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The only solace for the economy is that the MPC said there's monetary policy space for future action.The only solace for the economy is that the MPC said there's monetary policy space for future action.
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Anand Adhikari
  • Dec 5, 2019,
  • Updated Dec 5, 2019 3:11 PM IST

The Reserve Bank of India (RBI)'s  five-member Monetary Policy Committee (MPC) has decided to put a pause on easing of repo rate despite expectations of a 25 basis point cut. But, the MPC offered solace that there was monetary policy space for future action.

There are multiple reasons for the RBI's decision to not change the repo rate:

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The Reserve Bank of India (RBI)'s  five-member Monetary Policy Committee (MPC) has decided to put a pause on easing of repo rate despite expectations of a 25 basis point cut. But, the MPC offered solace that there was monetary policy space for future action.

There are multiple reasons for the RBI's decision to not change the repo rate:

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