Rbi Monetary Policy 2019-20 Highlights : Cuts Involvement Charge Per Unit Of Measurement To 9-Year Low

In the second bi-monthly monetary policy disceptation for 2019-20, the 6 fellow member Monetary Policy Committee (MPC) of the Reserve Bank of Republic of Republic of India (RBI) led past times Governor Shaktikanta Das cut the Repo charge per unit of measurement past times 25 solid position down points (bps) to 5.75 per cent. Repo charge per unit of measurement is the charge per unit of measurement at which the apex depository financial establishment lends short-term coin to commercial banks. This is the 3rd reduction inwards the twelvemonth as well as also the lowest inwards nine years. The contrary repo charge per unit of measurement nether the LAF stands adjusted to 5.50 per cent, as well as the marginal standing facility (MSF) charge per unit of measurement as well as the Bank Rate to 6.0 per cent. One solid position down betoken is one-hundredth of a percent point. Here are the major highlights of the RBI’s 2nd Bi-Monthly Monetary Policy statement.

 RBI Monetary Policy Highlights

  • Repo charge per unit of measurement reduced past times 25 bps to 5.75 per cent for 3rd fourth dimension inwards a row
  • Reverse repo charge per unit of measurement straightaway stands at 5.50 per cent, marginal standing facility (MSF) charge per unit of measurement 6 per cent
  • RBI changes policy opinion to accommodative from neutral
  • Cuts gross domestic product increase forecast to vii per cent from 7.2 per cent for FY20
  • Raises retail inflation forecast for April-September to 3-3.1 per cent as well as 3.4-3.7 per cent inwards October-March
  • Projects upward bias inwards nutrient inflation inwards almost term due to ascension prices of nutrient items
  • Forecast risks to inflation trajectory from monsoon uncertainties, unseasonal spike inwards vegetable prices, unsmooth crude prices, financial marketplace volatility as well as financial scenario
  • Waives RTGS as well as NEFT charges to promote digital transactions
  • Sets upwards a panel to review ATM charges, fees levied past times banks
  • To effect draft guidelines for ‘on tap’ licensing of small-scale finance banks past times August
  • Flags sudden slowdown inwards investments, moderation inwards soul consumption increase equally concern
  • All half-dozen MPC members voted inwards favour of 0.25 per cent policy charge per unit of measurement cut
  • Average daily surplus liquidity inwards the arrangement at ₹ 66,000 crore inwards early on June
  • Foreign Exchange Reserves stood at USD 421.9 billion on May 31, 2019
  • Note : The adjacent bimonthly monetary policy disceptation volition hold upwards held on seventh August 2019
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