The Reserve Bank of India has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5%. Consequently, the reverse repo rate under the LAF remains at 6.25%, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.
The decision of the MPC is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth. On the domestic front, gross domestic product (GDP) growth slowed down to 7.1% year-on-year (y-o-y) in Q2:2018-19, after four consecutive quarters of acceleration.
Based on an overall assessment, GDP growth for 2018-19 has been projected at 7.4% (7.2-7.3% in H2) as in the October policy, and for H1:2019-20 at 7.5%, with risks somewhat to the downside
Source- The Economic Times
Static/Current Takeaways Important for Indian Bank PO Exam 2018-
- Urjit Patel- 24th Governor of RBI, Headquarters- Mumbai, Established on- 1st April 1935, in Kolkata.