RBI : 3rd Bi-monthly Monetary Policy Statement 2016-17

Dear Readers, 

As we all know that today Raghuram Rajan the governor of Reserve Bank of India (RBI) has published the 3rd Bi-monthly Monetary Policy Statement, 2016-17. 

So we are going to provide you a short note about the same. As we don’t want you to miss any important news. Here we go:-

Raghuram Rajan the governor of Reserve Bank of India, held steady on the interest rates at RBI’s third bi-monthly monetary policy statement for the fiscal year 2016-17. Mr. Rajan, whose term ends on September 4, maintained repurchase (repo) rate at 6.5 per cent.  While the governor kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4 percent and other rates like RRR, SLR etc also remains unchanged.

So these are the Highlights of RBI’s third bi-monthly monetary policy statement:- 
  • Repo Rate- 6.50%- Unchanged
  • Reverse Repo Rate – 6.00%- Unchanged
  • Marginal Standing Facility Rate (MSF)- 7.00%- Unchanged
  • Bank Rate- 7.00%
  • Cash Reserve Ratio (CRR)- 4%- Unchanged
  • Statutory Liquidity Ratio (SLR)- 21%- Unchanged
  • Base Rate- 9.30% – 9.70%
  • Savings Deposit Rate- 4.00%
  • Term Deposit Rate > 1 Year 7.00% – 7.50%
  • Growth forecast at 7.6% for the current fiscal
  • Inflation target remains 5% for January 2017, upside risk
  • Normal monsoon, 7th Pay Commission award to boost growth
  • GST rollout to boost business sentiment, investment, and Timely implementation of GST a challenge
  • Marginal Cost Lending Rate framework for the interest rate to be modified.

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