associate sponsors

Llyod
HDFC

Highlights of RBI's fourth bi-monthly Monetary Policy Statement for 2017-18

Mumbai: The Reserve Bank today kept interest rate unchanged as was widely expected in view of upward trend in inflation even as it cut the growth forecast to 6.7 per cent for the current fiscal.

Consequently, the repo rate, at which it lends to banks, will stand at 6 percent.

The reverse repo, at which RBI borrows from banks will continue to be at 5.75 percent, it said at the fourth bi-monthly policy review.

Representational image. Reuters.

Representational image. Reuters.

In its last review in August it had slashed the benchmark lending rate by 0.25 percentage points to 6 percent, the lowest in 6 years.

The six-member monetary policy committee voted 5:1 for the decision, with only Ravindra Dholakia voting for a 0.25 percent reduction in rates.

The Reserve Bank of India (RBI) said that after a record low in June, inflation is trending up and estimated the headline number to touch 4.6 percent by the March quarter.

Following are the highlights of the fourth bi-monthly Monetary Policy Statement 2017-18, issued by Reserve Bank of India:

* Key policy rate kept unchanged at 6 percent.

* Reverse repo rate unchanged at 5.75 percent.

* Cuts economic growth forecast to 6.7 percent from 7.3 percent for FY'18

* Projects inflation at 4.2-4.6 percent in the second half.

* GST implementation rendered prospects for the manufacturing sector uncertain in the short term.

* Focus on keeping headline inflation close to 4 percent on a durable basis

* RBI continues to work towards the resolution of stressed corporate exposures in bank balance sheets.

* Recent structural reforms improving business environment, transparency and increasing formalisation of the economy.

* Suggests concerted drive to restart stalled investment projects, enhance ease of doing business, including implification of the GST to boost growth.

* Suggests rationalisation of "excessively high" stamp duties charged by states, faster rollout of affordable housing programme.

* Next MPC meeting on 5-6 December.


Updated Date: Oct 04, 2017 15:30 PM

Also Watch

Watch: The true stories from Dharavi that inspired Rajinikanth's Kaala
  • Thursday, March 8, 2018 Watch: Cyrus Khan talks about Parkour, jumping across walls and why he hates sitting
  • Thursday, May 31, 2018 Unwind: India's basketball sensation Amjyot Singh has his eyes set on becoming an NBA regular
  • Monday, May 28, 2018 First Day First Showsha — Review of Solo: A Star Wars Story in 10 questions
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See



{if $hideJSforEU != 'yes'} {/if}