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Here are the highlights of the RBI’s Monetary Policy Committee ( MPC) second bi-monthly statement for fiscal 2018-19:
* RBI hikes key lending rate (repo) by 0.25 per cent to 6.25 per cent
* Rate hike is the first in four-and-half-years
* Reverse repo rate stands at 6 per cent, bank rate at 6.50 per cent
* Growth projection retained at 7.4 per cent for 2018-19
* Projects retail inflation at 4.8–4.9 per cent for April-September, 4.7 per cent in H2
* Major upside risk to the inflation path as price of crude rose by 12 per cent
* Volatile crude oil prices adds to uncertainty to the inflation outlook
* Investments recovering well; to get boost from swift resolution under IBC
* Geo-political risks, financial market volatility, trade protectionism to impact domestic growth
* Adherence to budgetary targets by the Centre and states will ease upside risks to the inflation outlook
* All members of the monetary policy committee voted for 0.25% rate hike
The MPC will meet on on July 31 and later on August 1.
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