RBI Monetary Policy Highlights April 2018: The Reserve Bank of India concluded the six-member two-day bi-monthly Monetary Policy Committee meeting headed by the RBI governor Urijit Patel on Thursday keeping the key repo rate unchanged at 6%.
RBI Monetary Policy Highlights April 2018: The Reserve Bank of India concluded the six-member two-day bi-monthly Monetary Policy Committee meeting headed by the RBI governor Urijit Patel on Thursday keeping the key repo rate unchanged at 6%. This was the first Monetary Policy Committee meeting of the financial year 2018-2019. “The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth,” the RBI said a statement.
Highlights of RBI’s Monetary Policy Committee meeting of April 2018
- The Reserve Bank of India kept the benchmark repo rate unchanged at 6%.
- The reverse repo rate was left unchanged at 5.75% and the bank rate at 6.25%.
- The Reserve Bank of India flagged concerns on the global trade war and stock market volatility triggered by uncertainty regarding the pace of normalisation of US monetary policy.
- The Reserve Bank of India told warned all the banks, financial entities to restrain themselves dealing with virtual currencies and has directed to cut all the ties within three months.
- RBI revised the inflation projection to 4.7-5.1% in the first half of the financial year 2018-2019 and 4.4% in H2.
- Dr Chetan Ghate, Dr Pami Dua, Dr Ravindra H. Dholakia, Dr Viral V. Acharya and Dr Urjit R. Patel voted in favour of the monetary policy decision. Dr Michael Debabrata Patra voted for an increase in the policy rate of 25 basis points.
- RBI said that the recent volatility in the crude oil prices has disseminated uncertainty to the near-term outlook on the inflation.
- The Reserve Bank of India forecasted a GDP growth of 7.4% in FY19 from 6.6% in FY18. Further, the GDP growth has been projected at 7.3-7.4% in H1 and 7.3-7.6% in H2 of FY19.
- The minutes of the MPC’s meeting will be published by April 19, 2018.
- RBI has cleared the signs of revival in investment activities with exports to getting a boost from the improvement in global demand.
- The second bi-monthly policy meeting in the FY19 is scheduled on 5 and 6 June 2018 respectively.