RBI kept its key interest rate unchanged at 6.25 per cent on Wednesday, as widely expected, while lowering projections for inflation and striking a less hawkish tone in a policy statement.
Following are the highlights of second bi-monthly monetary policy for 2017-18 as announced by RBI:
* Repo rate unchanged at 6.25%
* Reverse repo unchanged at 6%
* Statutory Liquidity Ratio cut by 0.5% to 20%
* Growth forecast for 2017-18 lowered to 7.3% from 7.4%
* Inflation projected at 2-3.5% for H1, 3.5-4.5% H2, FY18
* GST roll out not to have material impact on inflation
* Farm loan waivers risk fiscal slippages and inflationary spillovers
* 7th Pay Commission allowances, geo political, financial risk pose upside risk to inflation
* Need to revive private investment, restore banking sector health, remove infrastructure bottleneck
via monetary policy: Highlights and full text of RBI’s bi-monthly monetary policy – The Economic Times
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