Fifth Bi-monthly Monetary Policy Statement Released by RBI
On the basis of an assessment of the current and evolving macroeconomic situation at its meeting, the Monetary Policy Committee (MPC) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.0 percent.
Consequently, the Reverse Repo Rate (RRR) under the LAF remains at 5.75 percent, and the Marginal Standing Facility (MSF) rate and the Bank Rate at 6.25 percent. The projection of real GVA growth for 2017-18 of the October resolution at 6.7per cent has been retained, with risks evenly balanced.
In the previous meeting in October, the RBI had maintained status quo on rates. Since then, inflation, as measured by the consumer price index, has accelerated to 3.58%, the fastest pace in seven months, because of rising food and fuel prices.
Since October 2017, global economic activity has been gaining momentum through the final quarter of the year, driven mainly by advanced economies (AEs). US growth remained largely resilient to hurricanes and grew at the highest pace in the past three years in Q3 of 2017, with positive contributions from private consumption, investment activity and net exports.
Important Takeaways from Above News-
- Dr. Urjit Patel is the 24th Governor of RBI.
- RBI Headquarters in Mumbai.
- The next meeting of the MPC is scheduled on February 6 and 7, 2018.