sponsored links
RBI's 6th bi-monthly monetary policy review highlights
- Key lending rate (repo) unchanged at 6 percent.
- Reverse repo rate remains at 5.75 percent and marginal standing facility (MSF) rate and Bank Rate at 6.25 percent.
- Monetary policy's stance neutral.
- Petrol and diesel prices rose sharply in Jan, reflecting lagged pass-through of past increases in global crude prices.
- Retail inflation estimated at 5.1 percent in Q4 this fiscal and 5.1-5.6 percent in H1 of FY2018-19.
- Inflation likely to ease to 4.5-4.6 percent in H2 of FY19.
- Gross Value Added (GVA) growth for FY18 seen at 6.6 percent.
- GVA growth for 2018-19 projected at 7.2 percent.
- GST stabilising, which augurs well for economic activity.
- Early signs of revival in investment activity.
- RBI seeks pick-up in credit growth due to recapitalisation of PSBs and resolution proceedings under IBC.
- Export growth expected to improve further on account of improving global demand.
- RBI says focus of Union Budget on rural and infrastructure sectors a welcome development.
- Five members voted in favour of status quo in interest rate; one member voted for increase of 0.25 percent.
- The RBI had last reduced the benchmark lending rate by 0.25 percentage points to 6 percent last August, bringing it to a 6-year low.
- Next meeting of the Monetary Policy Committee (MPC) is on 4 and 5 April.
sponsored links