Highlights of the RBI's sixth bi-monthly monetary policy announced today

Following are the highlights of the sixth bi-monthly monetary policy announced by RBI:

* Policy repo rate unchanged at 6.25 percent.

* Economic growth for FY17 lowered to 6.9 percent; RBI pegs it at 7.4 percent in 2017-18.



* Growth is expected to recover sharply in 2017-18.

* Retail inflation in Q4 likely to be below 5 percent.

* Inflation projected in the range of 4-4.5 percent in the first half of 2017-18 and 4.5-5 percent in the second half.

* Upside risks to inflation - rise in crude oil prices, volatility in exchange rate, and fuller effect of the 7th Pay Panel.

* Global growth projected to pick up modestly in 2017.

* Global trade remains subdued due to increasing tendency towards protectionist policies.

* RBI changes policy stance from 'accommodative' to 'neutral'.

* Monetary Policy Committee (MPC) shifts policy stance to neutral keeping in mind transitory effect of demonetisation.

* Surplus liquidity to fall with progressive remonetisation; abundant liquidity with banks may persist in early 2017-18.

* High frequency indicators point to subdued activity in services sector, automobile sales, domestic air cargo, railway freight traffic, and cement production.

* Steel consumption, port traffic, international air freight, foreign tourist arrivals weathered effect of demonetisation.

* Excluding food and fuel, inflation has been unyielding at 4.9 percent since September.

* Makes case for faster resolution of NPAs and hastening recapitalisation of banks for lower lending rates.

* The next meeting of the Monetary Policy Committee on April 5-6.

Updated Date: Feb 08, 2017 16:45 PM

Also Watch

IPL 2018: Royal Challengers Bangalore eye revival against Chennai Super Kings as 'Cauvery Derby' comes back to life
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Tuesday, April 24, 2018 It's A Wrap: Beyond the Clouds stars Ishaan Khatter, Malavika Mohanan in conversation with Parul Sharma
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See