The 2nd Bi-Monthly monetary policy statement has been released. On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting decided to:
- Reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 5.75% from 6.00% with immediate effect.
- Consequently, the reverse repo rate under the LAF stands adjusted to 5.50%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.0%.
- The Reserve Bank of India lowered the economic growth forecast for the current fiscal to 7% due to slowdown in domestic activities and escalation in global trade war.
GDP growth plunged to a five-year low of 5.8% in the January-March quarter due to lackluster growth in agriculture, manufacturing, construction, trade, hotels and power sectors. This, in turn, pulled down the FY19 GDP growth rate to a five-year low of 6.8%. The next meeting of the MPC is scheduled during August 5 to 7, 2019.
Static/Current Takeaways Important For LIC AAO Mains 2019:
- Shaktikanta Das- 25th Governor of RBI, Headquarters- Mumbai, Established on- 1st April 1935, in Kolkata.