1. Highlights of RBI governor Urjit Patel’s first monetary policy

Highlights of RBI governor Urjit Patel’s first monetary policy

Following are the highlights of RBI's fourth bi-monthly monetary policy statement, 2016-17

By: | Published: October 4, 2016 4:18 PM
RBI The RBI Monetary Policy left the Cash reserve ratio or CRR unchanged at 4%

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 pc in Jan-Mar 2017, from 5 per cent in the previous quarter

*Sees growth picking up to 7.9 pc in next year

*Pay Commission recommendations to spur price pressure

*Uncertainty around US elections, crude prices, global demand.

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