Following is the text of statement issued by Ministry of Finance in response to RBI unveiling its fourth bi-monthly monetary policy statement today.
We have noted that this decision has been made by the MPC in light of the underlying analysis which implies: (i) a downward revision of the real GVA growth forecast for 2017-18 from 7.3 percent to 6.7 percent, which leads to a widening of the output gap; and (ii) a marginally upward revision of the CPI inflation forecast for the second half of the year meaning an average inflation for the year 2017-18 as a whole of less than 4 percent.
Government welcomes the institution building initiatives, including : finalising the Peer to Peer NBFC financing regulations which would improve financing for smaller firms;
and increasing retail participation in government securities via aggregation of bids by stock exchanges."
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