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Inflation rate raised, and other RBI monetary policy higlights

Source: PTI
June 06, 2019 12:56 IST
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The following are the highlights of the second bi-monthly monetary policy announced by the RBI on Thursday:

  • Repo rate reduced by 25 bps to 5.75 pc for third time in a row
  • Reverse repo rate now stands at 5.50 pc, marginal standing facility (MSF) rate 6 pc
  • RBI changes policy stance to accommodative from neutral
  • Cuts GDP growth forecast to 7pc from 7.2 pc for FY20       
  • Raises retail inflation forecast for Apr-Sept to 3-3.1 pc and 3.4-3.7 pc in Oct-Mar
  • Projects upward bias in food inflation in near term due to rising prices of food items
  • Forecast risks to inflation trajectory from monsoon uncertainties, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario
  • Waives RTGS and NEFT charges to promote digital transactions
  • Sets up a panel to review ATM charges, fees levied by banks
  • To issue draft guidelines for 'on tap' licensing of small finance banks by Aug 
  • Flags sharp slowdown in investments, moderation in private consumption growth as concern
  • All six MPC members voted in favour of 0.25 pc policy rate cut
  • Average daily surplus liquidity in the system at Rs 66,000 crore in early June
  • Foreign Exchange Reserves stood at USD 421.9 billion on May 31, 2019
  • The next monetary policy statement is scheduled for August 7.
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