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Highlights of RBI's First Bi-monthly Monetary Policy

RBI Governor Raghuram Rajan announced cut in the key interest rate by 0.25 per cent.

Published: 05th April 2016 12:29 PM  |   Last Updated: 05th April 2016 12:37 PM   |  A+A-

By PTI

NEW DELHI: Following are the highlights of RBI's first bi-monthly monetary policy statement, 2016-17:

 * Repo rate cut by 0.25% to 6.50%

 * Reverse repo hiked by 0.25% to 6%

 * Cash reserve ratio or CRR unchanged at 4%

 * Minimum daily cash maintenance by banks with RBI cut by 5%

 * MSF rate cut by 0.75% to lower banks' borrowing cost

 * Policy to remain accommodative going forward

 * Pegs 2016-17 growth forecast at 7.6%

 * Expects inflation at around 5%

 * Cut in small savings rate, MCLR introduction to improve

   monetary policy transmission

 * Government adhering to fiscal consolidation path will help

   lower inflation

 * 7th Pay Commission award to put upward pressure of up to

   1.5% on inflation

 * Proposes custodian banks; banks focusing on wholesale and

   long term financing

 * Second bi-monthly monetary policy on June 7.

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