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What the RBI monetary policy has to offer

Source: PTI
Last updated on: June 07, 2016 11:38 IST
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RBI

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.
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