Reserve Bank Governor Raghuram Rajan today kept policy rate unchanged awaiting clarity...
Reserve Bank Governor Raghuram Rajan today kept policy rate unchanged awaiting clarity on impact of unseasonal rains on food inflation even as he wanted banks to pass on benefits of previous two rate cuts.
The repo rate, at which RBI lends to the banking system, will continue to be at 7.5 per cent and the cash reserve ratio, which is the amount of deposits parked with the central bank, will remain at 4 per cent.
Following are the highlights of RBI’s first bi-monthly monetary policy statement, 2015-16:
* Short-term lending rate (repo) unchanged at 7.5 pc
* Cash Reserve Ratio unchanged at 4 pc
* Retains Statutory Liquidity Ratio at 21.5 pc
* Estimates GDP growth at 7.8% in FY’16, up from 7.5% in FY’15
* Forecasts CPI inflation at 5.8 pc by March 2016
* CPI inflation to dip to 4 pc in August 2015
* Hailstorms in March affected 17% of the rabi crop sown area
* Future rate cuts will depend on interest rate reduction by banks
* India better prepared to deal with volatility post US Federal Reserve rate action
* State cooperative banks to be allowed to set up off-site/ mobile ATMs without prior approval from RBI
* RBI to formulate scheme for market making by primary dealers in semi-liquid and illiquid G-Secs
* Second bi-monthly policy statement on June 2