The Monetary Policy Committee (MPC) in its fourth bi-monthly statement, issued on 05.10.2018, on the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent.

The GDP growth projection for 2018-19 is retained at 7.4 per cent as in the August resolution. The projections of inflation for 2018-19 and Q1:2019-20 have been revised downwards from the August resolution.

The decision of the MPC is in consonance with the Government’s assessment of inflation and growth going forward and for achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent., while supporting growth.

The Government welcomes the MPC’s assessment and notes its decision to maintain the Policy Rate. 

 

Monetary policy decision: policy rate maintained to balance inflation targeting and growth support while aligning with government assessment. Monetary policy decision to maintain the policy repo rate under the Liquidity Adjustment Facility, based on the MPC's assessment of the macroeconomic situation to balance price stability and growth support. The MPC retained the GDP growth projection, revised downwards inflation projections for the remainder of the period, and framed its stance to achieve the consumer price index inflation target within the specified band while supporting economic activity.