Rbi’s Tertiary Bi-Monthly Monetary Policy Review 2016 Highlights

The Reserve Bank of India’s (RBI) governor Raghu Ram Rajan has kept the Repo Rate unchanged at a five-year depression of 6.5% in RBI’s tertiary bi-monthly monetary policy review, which was announced today (9th August 2016). This is the outgoing Governor Raghuram Rajan’s final monetary policy review meeting . The key banking enterprise has cutting the repo charge per unit of measurement past times 150 footing points since Jan 2015. It farther maintained the contrary repo charge per unit of measurement at 6%, as well as the cash reserve ratio at 4%. Here are the highlights of RBI’s monetary policy review as well as Rajan’s press conference today (9th August 9, 2016)

RBI tertiary bi-monthly Monetary Policy Review Highlights 2016

  • Cash reserve ratio or CRR unchanged at 4%
  • Repo charge per unit of measurement unchanged at 6.50 per cent, Reverse Repo at 6% 
  • Keeps marginal standing facility (MSF) charge per unit of measurement at seven per cent
  • Easy liquidity atmospheric condition are prompting banks to transit policy rates through their MCLR
  • Banks accept passed on charge per unit of measurement cutting create goodness solely modestly
  • Comfortable amongst NPAs recognition past times banks
  • External need probable to stay sluggish
  • KYC norms simplified. FAQ on KYC norms on RBI website for tardily reference
  • FCNR(B) redemptions non to disrupt liquidity inwards market
  • Forex reserves at USD 365.7 billion on August 5
  • FY17 gross domestic product increment forecast maintained at 7.6 per cent
  • Inflation target remains 5% for Jan 2017; upside risk
  • Marginal Cost Lending Rate framework for involvement charge per unit of measurement to live on modified
  • Monetary policy opinion remains ‘accommodative’
  • Normal monsoon, seventh Pay Commission respect to boost growth
  • Passage of GST Bill augurs good for consensus on economical reforms
  • Premature to utter near inflationary deport on of GST
  • Rate transmission past times banks probable if credit need picks up
  • Strong improvement inwards sowing. Good monsoon augurs good for nutrient inflation
  • Timely implementation of GST volition live on a challenge. GST volition assistance heighten returns on investment across economy. GST implementation may non necessarily Pb to inflation
  • Fourth bi—monthly monetary policy on Oct 4.

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