Home / Banking Notes / RBI Sixth Bi-Monthly Monetary Policy 2017-18: Highlights

RBI Sixth Bi-Monthly Monetary Policy 2017-18: Highlights

Following are the highlights of the sixth bi-monthly monetary policy announced by RBI:

The Reserve Bank kept the key policy rate unchanged at 6 percent for the third consecutive time today in view of firming inflation.

* 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 next meeting of the Monetary Policy Committee on April 5-6.

 

 

error: Content is protected !!