RBI has announced Fourth Bi-Monthly Monetary Policy Statement 2018-19, RBI keeps interest rates unchanged

RBI has announced Fourth Bi-Monthly Monetary Policy Statement 2018-19, RBI keeps interest rates unchanged

RBI has announced Fourth Bi-Monthly Monetary Policy Statement 2018-19, RBI keeps interest rates unchanged

Reserve Bank of India (RBI) Governor Urjit Patel has announced the Fourth Bi-monthly Monetary Policy Statement for the year 2018-19, RBI keeps interest rates unchanged. 

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting, the Monetary Policy Committee (MPC) decided to:-

Keep the policy Repo Rate under the liquidity adjustment facility (LAF) unchanged at 6.50 per cent.

Consequently, the Reverse Repo Rate under the LAF remains at 6.25 per cent, and the Marginal Standing Facility (MSF) rate and the Bank Rate at 6.75 per cent.

The Cash  Reserve Ratio (CRR) of scheduled banks unchanged at 4.0% of Net Demand And Time Liability (NDTL).

Current Reserve Bank of India (RBI) Policy Rates Given Below:- 

Repo Rate                                                  | 6.50 %

Reverse Repo Rate                                    | 6.25%

Marginal Standing Facility (MSF) Rate    | 6.75%

Bank Rate                                                  | 6.75%

Reserve Ratio

Cash  Reserve Ratio (CRR)                     | 4.00%

Statutory Liquidity Ratio (SLR)              | 19.50%

The Monetary Policy Committee (MPC) in its fourth bi-monthly statement, issued on 05.10.2018, on the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent. 

The GDP growth projection for 2018-19 is retained at 7.4 per cent as in the August resolution. The projections of inflation for 2018-19 and Q1:2019-20 have been revised downwards from the August resolution.

The decision of the MPC is in consonance with the Government’s assessment of inflation and growth going forward and for achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent., while supporting growth.

The Government welcomes the MPC’s assessment and notes its decision to maintain the Policy Rate.

The next meeting of the Monetary Policy Committee (MPC) is scheduled from December 3 to 5, 2018.