RBI highlights of the 6th bi-monthly

Reserve Bank of India

monetary policy statement:

* Key lending rate (repo) unchanged at 6 pc;

* Reverse repo rate remains at 5.75 pc and marginal standing facility (MSF) rate and Bank Rate at 6.25 pc;

* Monetary policy’s stance neutral;

* Petrol and diesel prices rose sharply in Jan, reflecting lagged pass-through of past increases in global crude prices;

* Retail inflation estimated at 5.1 pc in Q4 this fiscal and 5.1-5.6 pc in H1 of FY2018-19;

* Inflation likely to ease to 4.5-4.6 per cent in H2 of FY19;

* Gross Value Added (GVA) growth for FY18 seen at 6.6 pc;

* GVA growth for 2018-19 projected at 7.2 pc;

* GST stabilising, which augurs well for economic activity;

* Early signs of revival in investment activity;

* RBI seeks pick-up in credit growth due to recapitalisation of PSBs and resolution proceedings under IBC;

* Export growth expected to improve further on account of improving global demand;

* RBI says focus of Union Budget on rural and infrastructure sectors a welcome development;

* Five members voted in favour of status quo in interest rate; one member voted for increase of 0.25 pc;

* Next meeting of the MPC on April 4 and 5.

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