RBi pushes for reinvigorating private investments, clearing infra bottlenecks and providing big thrust to Pradhan Mantri Awas Yojana.
Following are the highlights of the third bi-monthly Monetary Policy Statement issued by the Reserve Bank of India:
- Key policy rate reduced by 0.25 per cent to 6%.
- Reverse repo rate cut by 0.25% to 5.75 per cent.
- Focus on keeping headline inflation close to 4 per cent on durable basis.
- Some risks to inflation have reduced or not materialised.
- Growth forecast unchanged at 7.3 pc for the current fiscal.
- Pushes for reinvigorating private investments, clearing infra bottlenecks and providing big thrust to Pradhan Mantri Awas Yojana.
- Forex reserves at $392.9 billion as on July 28.
- Four members of Monetary Policy Committee voted in favour of 0.25 pc rate cut.
- Farm loan waivers by states may result in fiscal slippages, undermine public spending quality.
- Government, RBI working to resolve large NPAs and recapitalise public sector banks.
- High levels of stress in twin balance sheets - banks and corporations – are likely to deter new investment.
- Next MPC meeting on October 3 and 4, 2017.
Photograph: PTI Photo
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