Monetary policy review: RBI holds rates, keeps door open for cuts in future

The Reserve Bank of India (RBI), in its sixth bi-monthly monetary policy of 2019-20 on Thursday, kept its policy rates and stance unchanged but adopted unconventional measures to lower banks’ cost of funds so that they could reduce their lending rates further and boost retail advances to revive consumption demand.

The six-member monetary policy committee (MPC) voted unanimously to keep the rates unchanged because the inflation outlook remained “highly uncertain.”

While the repo rate remained at 5.15 per cent and the stance “accommodative”, the central bank said there would be rate cuts as and when opportunity came. 

Right now, with