Key highlights RBI first bi monthly monetary policy review 2016 pdf

Key highlights RBI first bi monthly monetary policy review 2016 pdf

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Key highlights RBI first bi monthly monetary policy review 2016 pdf

Key highlights RBI first bi monthly monetary policy review 2016 pdf

The following are the highlights of the Reserve Bank of India’s first bi-monthly policy review:

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  • Repo rate was reduced by 25 basis points from 6.75 percent to 6.5 percent.
  • The cash reserve ratio (CRR), which is the quantum of liquid funds against deposits which commercial banks have to hold, has been left unchanged at 4 percent.
  • The minimum daily maintenance of CRR has been cut to 90 percent from 95 percent.
  • Reverse repo rate has been increased to 6 percent from 5.75 percent.
  • GDP growth is projected to improve gradually to 7.6 percent in 2016-17.
  • Retail inflation is projected to moderate in 2016-17 to around 5 percent.
  • The marginal standing facility (MSF) rate stands at 7 percent.
  • The bank rate which is aligned to the MSF rate stands at 7 percent.
  • The policy rate corridor narrowed from 100 basis points (bps) to 50 bps.
  • The statutory liquidity ratio, or the value of specified securities which commercial banks have to subscribe to, is at 21.25 percent, effective from April 2.
  • Seventh Pay Commission award to put upward pressure on inflation
  • Second bi-monthly monetary policy on June 7