Key takeaways from RBI Monetary Policy announcement
Key takeaways from RBI Monetary Policy announcement
Taking markets by surprise, RBI Governor Urjit Patel-led 6-member
Monetary Policy Committee announced the decision to keep the repo rate
unchanged contrary to wide speculation that RBI will cut 25 basis
points.
BusinessToday.In
New Delhi,
Dec 07, 2016,
Updated Dec 07, 2016, 3:58 PM IST
Taking markets by surprise, RBI Governor Urjit Patel-led 6-member Monetary Policy Committee announced the decision to keep the repo rate unchanged contrary to wide speculation that RBI will cut 25 basis points.
Markets reacted negatively with the S&P BSE Sensex plunging as much as 170 points and the Nifty losing ober 45 points.
Here are the key takeaways from RBI's fifth bi-monthly monetary policy statement:
Repo rate unchanged at 6.25%, Reverse Repo at 5.75%
Cash reserve ratio or CRR unchanged at 4%
Cuts growth forecast to 7.1%, from 7.6% for this fiscal
Inflation target remains 5% for March 2017, upside risk
Demonetisation to lower prices of perishables, could reduce inflation by 10-15 basis points by December
All MPC members voted in favour of status quo in policy
Demonetisation to result in short-run disruptions in cash-intensive sectors
Crude price volatility, surge in financial market turbulence could put March end inflation target at risk
Foreign exchange reserve rose to all-time high of USD 364 billion on December 2
RBI injected Rs 1.1 lakh crore liquidity through OMO purchases this fiscal
The next monetary policy will be held on February 8, 2017