Third Bi-Monthly Monetary Policy Statement 2014-15 Highlights
- Repo charge per unit of measurement unchanged at 8.0%;
- CRR unchanged at 4.0%
- SLR reduced past times l bps from 22.5% to 22.0% amongst number from the fortnight outset 09 August 2014
- Continue to render liquidity nether overnight repos at 0.25% of bank-wise NDTL too liquidity nether 7-day too 14-day term repos of upwardly to 0.75% of NDTL of the banking system.
- Upside risks to the target of ensuring CPI inflation at or below 8% past times Jan 2015 remain, although overall risks are to a greater extent than balanced than inwards June, made RBI to exit the policy charge per unit of measurement unchanged.
- With only about continuing doubtfulness nearly the path of the monsoon, it would live premature to conclude that futurity nutrient inflation, too its spill-over to broader inflation.
- Global economical activeness has been picking upwardly at a pocket-size space
- Investor peril appetite has buoyed fiscal markets, partly drawing forcefulness from assurances of continuing monetary policy back upwardly inwards industrial countries.
- Sentiment on domestic economical activeness appears to live reviving
- Liquidity atmospheric condition accept remained broadly stable, barring episodic tightness on line of piece of employment organisation human relationship of movements inwards the cash balances of the Government maintained amongst the Reserve Bank.
- All categories of uppercase flows accept been buoyant. Surges inwards uppercase inflows inwards excess of the electrical flow line of piece of employment organisation human relationship financing requirement too the repayment of swaps past times stone oil marketing companies accept bolstered international reserves.
- Prospects for reinvigoration of increment accept improved modestly. gross domestic product increment forecast of 5.5% inside a probable arrive at of five to 6% that was laid upwardly out inwards the Apr projection for 2014-15 tin flame live sustained.
- On the other hand, if risks relating to the global recovery, the monsoon too geo-political tensions intensify, the residual of risks could disputation to the downside.
- The Reserve Bank volition deed equally necessary to ensure sustained disinflation.
- The ceiling for banks’ full holdings of SLR securities inwards the HTM category is reduced from 24.5% of their NDTL to 24% of NDTL amongst number from 09 August 2014, to enable banks greater participation inwards fiscal markets.
- The Reserve Bank volition hold to acquit forrard its banking sector reforms agenda.
- The 4th bi-monthly monetary policy argument is scheduled on xxx September 2014.
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