First RBI monetary policy review after demonetisation: All you need to know
Know the highlights of RBI's fifth bi-monthly monetary policy statement, 2016-17.
The Reserve Bank of India (RBI) unexpectedly kept its policy repo rate unchanged at 6.25 percent on Wednesday.
Following are the highlights of RBI's fifth bi-monthly monetary policy statement, 2016-17:
-The policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25 percent.
-Consequently, the reverse repo rate under the LAF remains unchanged at 5.75 percent, and the marginal standing facility (MSF) rate and the bank rate at 6.75 percent.
-Cash reserve ratio or CRR unchanged at 4%
-Incremental increase in CRR to be withdrawn from December 10.
-Incorporating the expected loss of growth momentum in Q3 and waning effects in Q4 alongside the boost to consumption demand from higher agricultural output and the implementation of the 7th CPC award, GDP growth for 2016-17 is revised down from 7.6 percent to 7.1 percent, with evenly balanced risks
-Headline inflation is projected at 5 percent in Q4 of 2016-17 with risks tilted to the upside but lower than in the October policy review.