RBI has announced Sixth Bi-Monthly Monetary Policy Statement 2018-19:- Point-to-Point Details

RBI has announced Sixth Bi-Monthly Monetary Policy Statement 2018-19:- Point-to-Point Details
RBI has announced Sixth Bi-Monthly Monetary Policy Statement 2018-19:- Point-to-Point Details 


RBI has announced Sixth Bi-Monthly Monetary Policy Statement 2018-19:- Point-to-Point Details 

RBI Governor Shaktikanta Das has announced the Sixth Bi-monthly Monetary Policy Statement for the year 2018-19. (Feb 7th 2019)


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

Reduce the policy Repo Rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.5 per cent to 6.25 per cent with immediate effect.


Consequently, the Reverse Repo Rate under the LAF stands adjusted to 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.5 per cent.

The Cash Reserve Ratio (CRR) of scheduled banks unchanged at 4.0% of (NDTL).

Current RBI Policy Rates Given Below:-

Policy Repo Rate
6.25%
Reverse Repo Rate
6.00%
Marginal Standing Facility (MSF) Rate
6.50%
Bank Rate
6.50%
Cash Reserve Ratio (CRR)
4%
Statutory Liquidity Ratio (SLR)
19.25%


These decisions are in consonance with the objective of 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.

Moving on to the domestic economy, on January 7, 2019 the Central Statistics Office (CSO) released the first advance estimates (FAE) for 2018-19, placing India’s real gross domestic product (GDP) growth at 7.2 per cent – the same level as in 2017-18 (first revised estimates). The FAE for 2018-19 featured an acceleration in gross fixed capital formation (GFCF) and a slowdown in consumption expenditure (both private and government). The drag from net exports is estimated to decline in 2018-19.

Retail inflation, measured by y-o-y change in the CPI, declined from 3.4 per cent in October 2018 to 2.2 per cent in December, the lowest print in the last eighteen months. Continuing deflation in food items, a sharp fall in fuel inflation and some edging down of inflation excluding food and fuel contributed to the decline in headline inflation.

The next meeting of the Monetary Policy Committee (MPC) is scheduled from April 2 to 4, 2019.

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