RBI third bi-monthly monetary policy: Key highlights
Check out the key highlights of RBI's third bi-monthly monetary policy statement, 2016-17.
New Delhi: Citing upside risks to the Reserve Bank's inflation target for March 2017, Governor Raghuram Rajan on Tuesday maintained status quo on key rates at his last policy review meeting, as was widely expected, but underlined that the central bank continues to be accommodative.
Following are the highlights of RBI's third bi-monthly monetary policy statement, 2016-17.
* Repo rate unchanged at 6.50 per cent, Reverse Repo at 6%
* Cash reserve ratio or CRR unchanged at 4%
* Growth forecast at 7.6% for the current fiscal
* Inflation target remains 5% for January 2017; upside risk
* Normal monsoon, 7th Pay Commission award to boost growth
* GST roll out to boost business sentiment, investment
* Timely implementation of GST a challenge
* Premature to talk about inflationary impact of GST
* FCNR(B) redemptions not to disrupt liquidity in market
* Banks have passed on rate cut benefit only modestly
* FAQ on KYC norms on RBI website for easy reference
* Marginal Cost Lending Rate framework for interest rate to be modified
* Forex reserves at USD 365.7 billion on August 5
* Fourth bi-monthly monetary policy on October 4.