Reserve Bank of India Governor Raghuram Rajan maintained the status quo and kept the key policy rate unchanged. Rajan presented the central bank’s monetary policy. Following are the highlights of RBI’s second bi-monthly monetary policy statement, 2016-17:
* Repo rate unchanged at 6.50 per cent, Reverse Repo at 6%
* Cash reserve ratio or CRR unchanged at 4%
* Monetary policy to remain accommodative
* Pegs growth forecast at 7.6% for the current fiscal
* Inflation target kept unchanged at 5% for January 2017 with upward bias
* Impact of firming crude oil prices, implementation of 7th Pay Commission recommendations need to be watched
* Interest rate transmission critical for growth revival
* Timely capital infusion in PSU banks to aid credit flow
* Public investment gaining strength, continuing weakness in private investment is a concern.
* To shortly review the implementation of the Marginal Cost Lending Rate framework by banks
* Third bi-monthly monetary policy on August 9.
(With PTI inputs)