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Resource centre on India's rural distress
 
 

Economic growth onus falls on government

-The Telegraph

Hands-off RBI cuts forecast

The Reserve Bank of India’s policymakers shocked economists, industry and the Street by deciding to hit the pause button on interest rate cuts after five downward revisions this year.

The six-member monetary policy committee (MPC) of the central bank also slashed its growth forecast for this financial year to 5 per cent from 6.1 per cent at the October meeting.

The decision to retain the policy rate — the repo — at 5.15 per cent was unanimous and indicated that the central bank was peeved about being second-guessed on its monetary policy moves and had worked up the nerve to resist popular pressure to cut rates once again.

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