Reserve Bank of India Governor Raghuram Rajan has announced the Second Bi-monthly Monetary Policy Statement for the year 2016-17. This time he keeps repo rate unchanged at 6.5%, reverse repo rate stays at 6.00 %, and CRR remains at 4%. While, LAF will remain unchanged at 6.0 %, and the MSF rate and the Bank Rate at 7.0 %. The central bank’s decision to maintain status quo is the step to see the impact of delayed monsoon rains. The RBI said April inflation reading makes its future trajectory somewhat more uncertain. The decision could have to do with rise in inflation and global crude oil prices.
At present, Retail inflation rose to 5.39 % in April on higher food prices, reversing a downward trend seen in recent months. It was above RBI’s near-term target of 5% by March 2017. However, latest official data showed India was one of the world’s fastest growing economies in the March quarter, with GDP growing at a rate of 7.9 %. RBI had cut the repo rate by 0.25 % to 6.5 % in April in its first bi-monthly monetary policy review of the current financial year.
So let’s discuss some questions related to this post :
1. Who has announced the 2nd Bi-monthly Monetary Policy Statement for the year 2016-2017 ?
2. What is the current percentage of CRR, RR and RRR ?
Courtesy : RBI.org