The Reserve Bank of India (RBI) in its 6th bi-monthly monetary policy review for year 2016 has maintained status quo in key policy interest rate.Key policy interest rates were kept unchanged on the basis of an assessment of the current & evolving macroeconomic situation in the country. Reserve Bank Of India has kept its stance on the credit policy accommodative.
Key policy rates are Repo rate under the liquidity adjustment facility (LAF):
unchanged at 6.75%.
Reverse repo rate under the LAF:
Unchanged at 5.75 %. Marginal standing facility (MSF) rate and the Bank Rate has unchanged at 7.75%.
Cash Reserve Ratio (CRR) of scheduled banks:
- Unchanged at 4.0 % of net demand and time liability (NDTL). Continuation of liquidity under overnight repos at 0.25 % of bank wise NDTL at the LAF repo rate.
- Continuation of liquidity under 14 day term repos as well as longer term repos of up to 0.75 % of NDTL of the banking system through auctions.
- RBI projections In Financial Year (FY) 2016 growth will be at 7.4% with downward bias and FY17 growth at 7.6 Percent despite headwinds.
- Inflation will be around 5 percent for FY 16-17 due to good monsoon projections that can pull the inflation down.
- The inflation rate has evolved closely along the trajectory set by the monetary policy stance of Reserve Bank Of India.
Reserve Bank of India rates unchanged in Sixth bi-monthly monetary policy review for year 2016
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