New Delhi, Apr 6 (KNN) The Reserve Bank of India (RBI) announced maintain the status quo on the policy rate while cutting its inflation forecast for H1FY19 on thursday this week.

The RBI Monetary Policy Committee (MPC) meeting cut the consumer price index (CPI) inflation forecast for the first half of FY19 to 4.7-5.1 percent from the previous estimate of 5.1-5.6 percent.

Commenting on the announcement, Finance Ministry welcomed the decision taken by the committee.

The Ministry said that MPC’s projection of a higher GDP growth to 7.4 per cent is in line with the economic survey.

The Reserve Bank kept the key interest rate unchanged and cut its inflation forecast on lower food prices.

Responding to the announcements, industry body FICCI said that it is encouraging to see that the reserve bank has lowered the inflation forecasts and raised growth projections for 2018-19.

“While the Reserve Bank of India has maintained status quo in current monetary policy statement, we hope that RBI will soon consider cut in policy rate and give a further boost to demand and investments,” FICCI said in a statement.

It further informed that it had suggested a benign stance and balanced approach by the RBI, keeping in mind the need for pushing growth in investments.

“While the economy is seeing signs of recovery, support is needed from all quarters to translate this into a firm recovery. This is critical for pushing investments, growth and job creation,” the release added.

Even though RBI has maintained a status quo on the policy rates, inflation and growth projections for 2018-19 do provide optimism for a rate cut in forthcoming monetary policy decisions, FICCI said. (With Inputs from a media report) (KNN/DA)