RBI Keeps Repo Rate Unchanged At 5.15%, Pegs Growth At 6% In 2020-21

The Reserve Bank of India (RBI) kept the repo rate unchanged at 5.15 per cent in its sixth bi-monthly statement of current fiscal year. The RBI decided to continue with an "accommodative" policy stance. Today's statement is the first after the presentation of Union Budget, in which the government outlined huge packages for farming and infrastructure, but only gave a small cut in personal taxes and provided no new incentives for the beleaguered financial and housing sectors.

Consumer inflation, or the rate of increase in consumer prices, worsened to 7.35 per cent in December - its highest level recorded in more than five years - primarily driven by food prices.

India's economy is forecast to grow 5 per cent in the year ending in March - its weakest pace in 11 years. The economy has, however, recently shown signs of recovery.

According to the findings of a private survey, manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output.

(input from NDTV)