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| RBI has announced Sixth Bi-Monthly Monetary Policy Statement 2019-20: Point-to-Point Details |
RBI has announced Sixth Bi-Monthly Monetary Policy Statement 2019-20: Point-to-Point Details
Sixth Bi-monthly Monetary Policy Statement, 2019-20, Reserve Bank of India (RBI) did not change interest rates in Sixth Monetary Policy, Repo Rate, Reverse Repo Rate, Bank Rate, RBI Monetary Policy PDF in Hindi English Both Here Download Now: Reserve Bank of India, RBI Governor Shaktikanta Das has announced the Sixth Bi-monthly Monetary Policy Statement for the year 2019-20.
On the basis of an assessment of the current and evolving macroeconomic situation at its meeting, the Monetary Policy Committee (MPC) decided to:-
The policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15 per cent.
Consequently, the reverse repo rate under the LAF remains unchanged at 4.90 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 5.40 per cent.
The Cash Reserve Ratio (CRR) of scheduled banks unchanged at 4.0% of (NDTL).
According to the RBI Fifth Bi-Monthly Monetary Policy Statement 2019-20, What is The Current RBI Policy Rates:
Policy Repo Rate
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5.15%
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Reverse Repo Rate
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4.90%
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Marginal Standing Facility (MSF) Rate
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5.40%
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Bank Rate
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5.40%
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Cash Reserve Ratio (CRR)
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4%
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Statutory Liquidity Ratio (SLR)
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18.25%
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RBI Monetary Policy Tools | Monetary Policy Instruments
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.
On the domestic economy, the first advance estimates (FAE) released by the National Statistical Office (NSO) on January 7, 2020 placed India’s real gross domestic product (GDP) growth for 2019-20 at 5.0 per cent. In its January 31 release, the NSO revised real GDP growth for 2018-19 to 6.1 per cent from 6.8 per cent given in the provisional estimates of May 2019. On the supply side, growth of real gross value added (GVA) is estimated at 4.9 per cent in 2019-20 as compared with 6.0 per cent in 2018-19.
Industrial activity, measured by the index of industrial production (IIP), improved in November after contracting in the previous three months. The output of core industries returned to positive territory in December after four months of contraction, buoyed by five out of eight of its constituents – coal; refinery products; fertilisers; steel; and cement.
Capacity utilisation (CU) in the manufacturing sector, measured by the Reserve Bank’s order books, inventory and capacity utilisation survey (OBICUS), fell to 69.1 per cent in Q2 from 73.6 per cent in Q1; seasonally adjusted CU also eased to 70.3 per cent from 73.4 per cent.
The Reserve Bank’s industrial outlook survey points to weak demand conditions facing the manufacturing sector in Q3:2019-20. The Reserve Bank’s business expectations index suggests an improvement in Q4.
Retail inflation, measured by year-on-year changes in the CPI, surged from 4.6 per cent in October to 5.5 per cent in November and further to 7.4 per cent in December 2019, the highest reading since July 2014. While food group inflation rose to double digits, the fuel group moved out of deflation. Inflation in CPI excluding food and fuel continued to edge up from its October trough.
CPI food inflation increased from 6.9 per cent in October to 12.2 per cent in December, primarily caused by a spike in onion prices due to unseasonal rains in October-November. Excluding onions, food inflation would have been lower by 4.7 percentage points and headline inflation by 2.1 percentage points in December. In addition, inflation in several other food sub-groups such as milk, pulses, cereals, edible oils, eggs, meat and fish also firmed up.
The next meeting of the Monetary Policy Committee (MPC) is scheduled during March 31, April 1 and 3, 2020.
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