RBI’s Fourth Bi-monthly Monetary Policy statement: Highlights

Following are the highlights of the Reserve Bank’s Fourth Bi-monthly Monetary Policy statement for 2015-16:

* Cuts interest rate by 0.5 per cent to boost economy

* Repo rate adjusted to 6.75 per cent, lowest in four-years

* Expects banks to pass on entire benefit to borrowers

* CRR remains unchanged at 4 per cent

* GDP forecast for 2015-16 lowered to 7.4 per cent

* Tentative economic recovery underway, far from robust

* Global environment looking weak; not good for India

* Growth likely to pick up in later part of this fiscal

* CPI inflation expected to reach 5.8 per cent in January 2016

* Inflation is likely to go up from September

* FPI investment limit in debt securities to be fixed in rupee term

* FPI investment limit in govt bonds to be hiked to 5 per cent by 2018

* RBI to issue final guidelines on base rate computation by November-end.

* Fifth Bi-monthly Monetary Policy on December 1.