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RBI Governor Urjit Patel`s debut monetary policy review: All you need to know
Know the key highlights of RBI`s fourth bi-monthly monetary policy statement, 2016-17.
New Delhi: Following are the highlights of RBI's fourth bi-monthly monetary policy statement, 2016-17:
* Repo rate cut by 0.25% to 6.25%, Reverse Repo at 5.75%
* Cash reserve ratio or CRR unchanged at 4%
* Growth forecast at 7.6% for the current fiscal
* Normal monsoon to quicken growth momentum
* Inflation target remains 5% for March 2017, upside risk
* 6-member Monetary Policy Committee makes India's first
Collective interest rate decision
* All MPC members voted in favour of rate cut
* Foreign exchange reserve rose to all-time high of USD 372 billion by September
*Govt has announced measures to cool food inflation, which opened up space for rate cut
*Banks should cut lending rates as small savings rate has been lowered
*RBI Governor expects further downgrading of global growth
*To allow start-ups to raise up to USD 3 million ECB annually
* Next monetary policy on December 7
*RBI's research department sees inflation at 5.3% in Jan-Mar 2017, from 5 percent in the previous quarter
*Sees growth picking up to 7.9% in next year
*Pay Commission recommendations to spur price pressure
*Uncertainty around US elections, crude prices, global demand.