RBI keeps key interest rates unchanged; retains FY19 GDP growth projection at 7.4 per cent

For the first half of 2019-20, the GDP is been projected at 7.5 per cent and for the second half of the current fiscal is projected at is projected at 2.7-3.2 per cent.

A Reserve Bank of India (RBI) logo is seen at the gate of its office in New Delhi, India. 

MUMBAI:  The Reserve Bank of India Wednesday left the repo rate unchanged while maintaining the stance of 'calibrated tightening' of policy.

The key rate remains unchanged at 6.5 per cent. This is for the second time in a row that the central bank did not tinker with the interest rate.

"The decision of the Monetary Policy Committee is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of 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," RBI said.

The central bank also retained the GDP growth projection for FY19 at 7.4 per cent. For the first half of 2019-20, the GDP is been projected at 7.5 per cent.

RBI said inflation in the second half of the current fiscal is projected at is projected at 2.7-3.2 per cent.

While the decision on keeping the policy rate unchanged was unanimous, Ravindra H Dholakia voted to change the stance to neutral.

The RBI's policy decission failed to boost the benchmark indices. BSE Sensex fell 0.9 per cent at IST 3:04 pm. The weakness in Asian markets is also weighing down the investors' sentiment.