The Reserve Bank of India on Friday in its fourth bi-monthly policy decided to hold the key lending rate at 6.50 per cent even as it tweaked the policy stance to 'calibrated tightening' from 'neutral'.
Here are the key takeaways from RBI's policy outcome:Key Takeaways- MPC keeps repo rate unchanged at 6.5 per cent- MPC changes stance from neutral to 'calibrated tightening'- Repo rate kept unchanged by a 5-1 vote; Chetan Ghate voted for a rate hike - Stance changed by a vote of 5-1; Ravindra Dholakia voted for a neutral stance - RBI proposes voluntary retention route for FPIs in debt markets- Inflation projected at 3.9-4.5 percent in H2 and 4.8 percent in Q1:2019-20 - GDP growth seen at 7.4% in FY19 7.6% in FY20- Global economic activity becoming uneven, outlook clouded by uncertainties - Excise cut in petrol and diesel will moderate retail inflation - Rise in oil prices may have a bearing on disposable incomes, dent profit margins of corporates - Oil prices remain vulnerable to further upside pressures - Global, domestic financial conditions tightened, may dampen investment activity - Exports outlook uncertain - Fiscal slippage at the centre/state to have a bearing on the inflation outlook,besides heightening market volatility and crowding out private investment - Inflation outlook needs a close vigil over the next few months, several upside risks persist - Trade tensions, volatile and rising oil prices, and tightening global financial conditions pose substantial risks to growth, inflation outlook - Calls for further strengthening of domestic macroeconomic fundamentals - Next meeting of the MPC on December 35.