RBI cut repo rate by 25 bps; here are the highlights of monetary policy statement

New Delhi: Following are the highlights of RBI's first bi-monthly monetary policy statement, 2016-17:
* Repo rate cut by 0.25% to 6.50%
* Reverse repo hiked by 0.25% to 6%

RBI governor Raghuram Rajan.

RBI governor Raghuram Rajan.

* Cash reserve ratio or CRR unchanged at 4%
* Minimum daily cash maintenance by banks with RBI cut by 5%
* MSF rate cut by 0.75% to lower banks' borrowing cost
* Policy to remain accommodative going forward
* Pegs 2016-17 growth forecast at 7.6%
* Expects inflation at around 5%
* Cut in small savings rate, MCLR introduction to improve
monetary policy transmission
* Government adhering to fiscal consolidation path will help
lower inflation
* 7th Pay Commission award to put upward pressure of up to
1.5% on inflation
* Proposes custodian banks; banks focusing on wholesale and
long term financing
* Second bi-monthly monetary policy on June 7.

Updated Date: Apr 05, 2016 12:10 PM

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