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% [caption id=“attachment_2615994” align=“alignleft” width=“380”]  RBI governor Raghuram Rajan.[/caption] * 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. PTI