RBI policy: Highlights of 2nd bi-monthly monetary policy

Following are the highlights of second bi-monthly monetary policy for 2017-18 as announced by RBI:

* Repo rate unchanged at 6.25 percent

* Reverse repo unchanged at 6 percent

* Statutory Liquidity Ratio cut by 0.5 percent to 20 percent



* Growth forecast for 2017-18 lowered to 7.3 percent from 7.4 percent

* Inflation projected at 2-3.5 percent for H1, 3.5-4.5 percent H2, FY18

* GST rollout not to have material impact on inflation

* Farm loan waivers risk fiscal slippages and inflationary spillovers

* 7th Pay Commission allowances, geo political, financial risk pose upside risk to inflation

* Need to revive private investment, restore banking sector health, remove infrastructure bottleneck

* RBI to work with government to address stress in bank balance sheet

* Five MPC members vote in favour of status quo on monetary policy, one had different views

The next meeting of Monetary Policy Committee is on 1 August and 2.

Updated Date: Jun 07, 2017 15:30 PM

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