The Reserve Bank of India on Tuesday kept the key rates unchanged at 6.50 per cent.
Here are the highlights:
- Repo rate unchanged at 6.50 per cent, Reverse Repo at 6%
- Cash reserve ratio or CRR unchanged at 4%
- Monetary policy to remain accommodative
- Pegs growth forecast at 7.6% for the current fiscal
- Inflation target kept unchanged at 5% for January 2017 with upward bias
- Impact of firming crude oil prices, implementation of 7th Pay Commission recommendations need to be watched
- Interest rate transmission critical for growth revival
- Timely capital infusion in PSU banks to aid credit flow
- Public investment gaining strength, continuing weakness in private investment is a concern.
- To shortly review the implementation of the Marginal Cost Lending Rate framework by banks
- Third bi-monthly monetary policy on August 9.