The RBI reduced its GDP growth forecast for the current budget to 5%. The repo rate remains unchanged at 5.15%.

The Reserve Bank of India announced the policy interest rate unchanged at 5.15% amid "current macroeconomic situation and development." The central bank has lowered its GDP growth forecast for 5% from 6.1%.

RBI's Monetary Policy Committee (MPC) remains "supportive" to eliminate the possibility of future interest rate increases.

All members of the Monetary Policy Committee have approved the decision. Given the stance of this meeting, the RBI has cut 135 basis points from the beginning of this fiscal year.

"We cannot reduce the rates automatically and [must] allow time for the previous rates to be played. Currently, 44 base points are submitted. We have also introduced external benchmark interest rates from 1 November for the same purpose, "said the Central Bank of India Governor Shaktikanta Das, in his decision to repurchase interest rates at a press conference.

"The MPC is aware that there is a monetary policy area for future operations. However, with the continuously changing inflation rate, the committee Therefore, the MPC decided to keep the policy rate at the same level and continue with a relaxed attitude as long as it is necessary to revive growth while ensuring that inflation remains. Are on target, "the RBI said.

Abheek Barua, chief economist at HDFC Bank, said the RBI's loan interest rate change was surprising due to the shrinking growth in the second quarter of 2019-20.

"It looks like the RBI wants to see the delayed effects of a 135 basis point reduction in policy interest rates along with some of the fiscal measures available for future growth," he said.

RBI revised its CPI inflation forecast to 5.1 - 4.7% in the second half of the current financial year and 4% -3.8% for the first half of 2020-21.

"Domestic demand is slowing down, reflecting that inflation has slowed down, excluding food and fuel," added RBI.

The real GDP growth expected in October's policy is 6.1% for the year 2019-20. "The growth of GDP in the second quarter of the year 2019-20 is much lower than expected. Various high-frequency indicators suggest that domestic and foreign demand conditions are still weak, "added RBI.

Considering these factors, the RBI has revised its GDP growth for 2019-20 down to 4.9-5.5% from 6.1% in October's policy in the second half of 2019-20.

The central bank's decision was followed by a weak growth environment. India grew only 4.5% in the July to October quarter, the slowest economic growth since March 2013.

"The MPC said that economic activity has weakened again and the production gap is still negative. However, many measures initiated by the government and the central bank's monetary easing since February 2019 are expected to gradually enter into the real economy. "RBI added.