RBI’s Second Bi – Monthly Monetary Policy for 2017-18

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 7^th, 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 7^th 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: