RBI’s Second Bi – Monthly Monetary Policy for 2017-18
Reserve Bank of India (RBI) has published its Second Bi- monthly Monetary Policy Rates in Mumbai on June 7th, 2017. The Second Bi-monthly policy has been released based on the assessment of the Monetary Policy Committee of the Reserve Bank of India (RBI).
Present Member’s of the Monetary Policy committee:
- Urjit Patel, Governor of RBI.
- Michael Patra, Executive Director of RBI
- Rama Subramaniam Gandhi, Retired Deputy Governor of RBI
- Pami Dua, Director at Delhi School of Economics
- Ravindra Dholakia, An economics professor of IIM Ahmadabad
- Chetan Ghate, Professor at Indian Statistical Institute.
Main Highlights of Second Bi – Monthly Monetary Policy:
- Repo rate unchanged at 6.25%.
- Reverse repo unchanged at 6%.
- Statutory Liquidity Ratio cut by 0.5% to 20%.
- Growth forecast for 2017—18 lowered to 7.3% from 7.4%.
- Inflation projected at 2-3.5% for first Half of the financial year 2017-18 and 3.5-4.5% for second half of the financial year 2017-18.
- Implementation of the GST is not expected to have any material impact on overall inflation.
- RBI to work with government to address stress in bank balance sheet.
- Implementing allowances under 7th pay commission have been identified as upside risk to inflation.
- Need to revive private investment, restore banking sector health, remove infrastructure bottleneck.
- Next Monetary Policy Committee meeting scheduled on 1 and 2 August.
Present Current Rates are given as below:
|Policy Repo Rate||6.25%||Unchanged|
|Reverse Repo Rate||6.00%||Unchanged|
|Marginal Standing Facility Rate (MSF)||6.50%||Unchanged|
|Cash Reserve Ratio (CRR)||4%||Unchanged|
|Statutory Liquidity Ratio (SLR)||20.00%||Changed.|
Reduced 0.50% from earlier 20.50%.