Monetary Policy Committee (MPC) of Reserve Bank of India has increased the policy Repo Rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.25 percent in the Second Bi-monthly Monetary Policy Statement (2018-19). Consequently, the reverse repo rate under the LAF stands adjusted to 6.0 percent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.50 percent.
MPC revised CPI inflation for 2018-19 to 4.8-4.9% in the first half and 4.7% in the second half. The MPC stated that the GDP growth rate for 2018-19 is retained at 7.4 percent.
Static/Current Takeaways Important for SBI PO/Clerk Exam 2018-
- The Monetary Policy Committee (MPC) is a committee of the RBI headed by its Governor.
- The next meeting of the MPC is scheduled on July 31 and August 1, 2018.
- Urjit Patel is Present Governor of RBI.
Source- The Hindu Business Line