RBI hikes repo rate by 25 bps to 6.25%; other highlights of the monetary policy announcement

Mumbai: The following are the highlights of the second bi-monthly monetary statement for 2018-19:

* RBI hikes key lending rate (repo) by 0.25 percent to 6.25 percent

* Rate hike is the first in four-and-half-years

* Reverse repo rate stands at 6 percent, bank rate at 6.50 percent

Representational image. Reuters

Representational image. Reuters

* Growth projection retained at 7.4 percent for 2018-19

* Projects retail inflation at 4.8-4.9 percent for April-September, 4.7 percent in H2

* Major upside risk to the inflation path as price of crude rose by 12 percent

* Volatile crude oil prices adds to uncertainty to the inflation outlook

* Investments recovering well; to get boost from swift resolution under IBC

* Geo-political risks, financial market volatility, trade protectionism to impact domestic growth

* Adherence to budgetary targets by the Centre and states will ease upside risks to the inflation outlook

* All members of the monetary policy committee voted for 0.25% rate hike

* Next meeting of the MPC on 31 July and 1 August.

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Updated Date: Jun 06, 2018 15:25:10 IST

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