Money & Banking

Highlights of RBI monetary policy

PTI Mumbai | Updated on June 06, 2018

Urjit Patel, RBI Governor   -  REUTERS

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.

Published on June 06, 2018

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