August 2, 2017

Growth forecast unchanged at 7.3% for the current fiscal, says Governor Urjit Patel

Following are the highlights of the third bi-monthly Monetary Policy Statement issued by RBI:

  •     Key policy rate reduced by 0.25 per cent to 6 pc.
  •     Reverse repo rate cut by 0.25 pc to 5.75 pc.
  •     Focus on keeping headline inflation close to 4 pc on durable basis
  •     Some risks to inflation have reduced or not materialised.
  •     Growth forecast unchanged at 7.3 pc for the current fiscal.
  •     Pushes for reinvigorating private investments, clearing infra bottlenecks and providing big thrust to PMAY.
  •     Forex reserves at USD 392.9 billion as on July 28.
  •     Four members of Monetary Policy Committee voted in favour of 0.25 pc rate cut.
  •     Farm loan waivers by states may result in fiscal slippages, undermine public spending quality.
  •     Government, RBI working to resolve large NPAs and recapitalise public sector banks.
  •     High levels of stress in twin balance sheets – banks and corporations – are likely to deter new investment.
  •     Next MPC meeting on October 3 and 4, 2017.

[The Business Standard]