 "Monetary Policy in 2 minutes")
Monetary action
Repo rate hiked by 25 bps to 7.75%
MSF rate cut by 25 bps to 8.75%
CRR left unchanged at 4%
Liquidity support via term repo hiked to 0.5% of NDTL from 0.25%
Objective
Also Read
Repo rate hike to combat inflation
MSF rate reduced as currency stabilised
Extra liquidity support to ensure flow of credit
Growth & inflation
GDP growth seen at 5% for this fiscal
GDP growth seen at 5% for this fiscal
WPI inflation to remain higher than current levels
Retail inflation to remain around 9% in the absence of policy action
Developmental measure: Five pillars
Strengthen monetary policy framework
Entry of new banks, new varieties of banks
Deepening financial markets and increasing liquidity
Expanding access to finance to SME, unorganised sector
To improve system’s ability to deal with corporate and financial institution distress
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