The six-member MPC had kept the repo rate unchanged on December 5 despite moderation in economic growth and easing inflation.
The RBI reiterated that it would maintain an accommodative stance as long as necessary to revive economic growth.
The comments come a year after government tagged Bitcoins and other cryptocurrencies illegal and the RBI banned their trade.
The sharp decline in growth had many analysts assuming the Reserve Bank will deliver a rate cut on Thursday.
The central bank also revised GDP growth downwards to 5 per cent for 2019-20 from 6.1 per cent projected in its October policy.
The economy is expanding well below the rate needed to generate enough jobs for the millions of young Indians.
GDP growth plummeted to a six-year low of 5 per cent for the June quarter and is expected to come lower for the September quarter.
A modest overshoot in recent inflation outruns is outweighed by downside risks to RBI's growth estimates.
With the reduction in their respective benchmark lending rates, home, auto and other loans have become cheaper.
The rate reduction is not applicable to the repo-linked loans.