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RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

RBI deputy governor said, 'Liquidity conditions continue to normalise'

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Rbi Monetary Policy

BS Web Team  |  New Delhi 

The monetary policy committee (MPC) of the Reserve Bank of India (RBI), led by Governor Urjit Patel, kept its policy rate unchanged on Wednesday, as widely expected, after inflation accelerated to a seven-month high and stronger economic growth reduced the need for monetary stimulus. The market also seemed to be of the view that the six-member monetary policy committee will not change the policy repo rate. Besides rising inflation, the issues of hardening bond yields and tightening liquidity have reduced the scope for RBI loosen its stance. Ten economists and bond dealers polled ...

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RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

Key highlights   RBI maintains status quo, keeps repo rate unchanged at 6 per cent; maintains neutral stance.   MSF, bank rate unchanged at 6.25 per cent   Real GVA growth aim stays at 6.7 per cent with risks evenly balanced   MPC committed to keep CPI close to 4 per cent on durable basis

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

Monetary policy highlights:   — Q2 Growth was lower than projected in the October policy   — Recent increase in crude prices may have a negative impact on GVA growth   — Shortfalls in kharif production and rabi sowing pose downside risks to agri outlook   — There has been some pick-up in credit growth in recent months

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

RBI's growth projections for FY18   — FY18 real GVA maintained at 6.7 per cent   — Q3 GVA seen at 7 per cent   — Q4 GVA seen at 7.8 per cent

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

Highlights of Monetary Policy:    — Upward trajectory in flation may continue in the near-term   — Impact of HRA by the central government is expected to peak in December   — Recent rise in international crude oil prices may sustain   — Q3, Q4 inflation estimated in 4.3-4.7 per cent range

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

RBI Governor Urjit Patel: Governance reforms for all PSU Banks will also feature for all banks. PSU Bank recap bonds to be front-loaded for banks with better balancesheets.

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

RBI Governor Urjit Patel: MPC considered upside pressure on food and living costs.

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

RBI deputy governor: Will consider OMOs if liquidity is to be absorbed or injected on durable basis as RBI is still essentially absorbing liquidity.

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

RBI deputy governor: Overhang of liquidity surplus in banking has come down and banking system is moving towards neutrality. Liquidity condition to be marginally surplus by year-end. Expect liquidity neutrality by first half of next FY.

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

Working closely with Govt, recapitalization will be front-loaded for banks that have exercised prudence, governance reforms will also feature as part of the overall plan to ensure money is used to strengthen PSBs: Urjit Patel

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

The next meeting of the MPC is scheduled on February 6 and 7, 2018.

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

On the whole, inflation is estimated in the range 4.3-4.7 per cent in Q3 and Q4 of this year, including the HRA effect of up to 35 basis points, with risks evenly balanced.

First Published: Wed, December 06 2017. 15:42 IST

RBI monetary policy: Repo rate unchanged at 6%, inflation forecast hiked

RBI deputy governor said, 'Liquidity conditions continue to normalise'

The monetary policy committee (MPC) of the Reserve Bank of India (RBI), led by Governor Urjit Patel, kept its policy rate unchanged on Wednesday, as widely expected, after inflation accelerated to a seven-month high and stronger economic growth reduced the need for monetary stimulus. The market also seemed to be of the view that the six-member monetary policy committee will not change the policy repo rate. Besides rising inflation, the issues of hardening bond yields and tightening liquidity have reduced the scope for RBI loosen its stance. Ten economists and bond dealers polled ...

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