GDP is expected to decline by 9.5 per cent, RBI governor Shaktikanta Das while announcing the rates.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) at the end of its second meeting this year today was unanimous in its view that there is no need to cut the repo rate further from the 4% now.
The six-member Monetary Policy Committee (MPC), headed by the RBI Governor, announced its decision after the 24th meeting of the MPC.
The MPC is expected to release its resolution on the monetary policy after their meet August 4-6.
Inflation for December had touched 7.35 per cent raising the case for a no rate-cut.
The Monetary Policy Committee cut the rates by 0.35 percent, taking the total cuts during 2019 to 1.10 percent to a near record low of 5.40 percent.
If the consensus forecast is met, consumer prices will rise at their fastest pace since October, but would still be lower than the central bank's medium-term target for a 4.0% increase for a tenth consecutive month.
The RBI had on Thursday announced that it will soon issue a new Rs 100 note in lavender colour.