Rbi’s Sixth Bi-Monthly Monetary Policy Review 2018 Highlights

The Reserve Bank of India’s Monetary Policy Committee (MPC) headed by  RBI Governor Urjit Patel, today (6th Feb 2018) presented it’s sixth in addition to finally bi-monthly monetary policy for the electrical flow financial year. In persuasion of firming inflation, the key banking concern kept the repo charge per unit of measurement – the key charge per unit of measurement at which the RBI lends to other banks – unchanged at 6 per cent. The reverse repo charge per unit of measurement under the LAF (liquidity adjustment facility) remains at 5.75 per cent, in addition to the marginal standing facility (MSF) charge per unit of measurement and the banking concern charge per unit of measurement at 6.25 per cent. Here are the major highlights of today’s monetary policy statement.

RBI’s 6th bi-monthly monetary policy review highlights

  • Key lending charge per unit of measurement (repo) unchanged at 6 percent.
  • Reverse repo charge per unit of measurement remains at 5.75 percent in addition to marginal standing facility (MSF) charge per unit of measurement in addition to Bank Rate at 6.25 percent.
  • Monetary policy’s opinion neutral.
  • Petrol in addition to diesel fuel prices rose sharply inwards Jan, reflecting lagged pass-through of past times increases inwards global unsmooth prices.
  • Retail inflation estimated at 5.1 percent inwards Q4 this financial in addition to 5.1-5.6 percent inwards H1 of FY2018-19.
  • Inflation probable to rest to 4.5-4.6 percent inwards 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 good for economical activity.
  • Early signs of revival inwards investment activity.
  • RBI seeks pick-up inwards credit growth due to recapitalisation of PSBs in addition to resolution proceedings nether IBC.
  • Export growth expected to ameliorate farther on trouble organization human relationship of improving global demand.
  • RBI says focus of Union Budget on rural in addition to infrastructure sectors a welcome development.
  • Five members voted inwards favour of condition quo inwards involvement rate; i fellow member voted for increment of 0.25 percent.
  • The RBI had finally reduced the benchmark lending charge per unit of measurement past times 0.25 per centum points to 6 percent finally August, bringing it to a 6-year low.
  • Next coming together of the Monetary Policy Committee (MPC) is on iv in addition to five April.
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