Reserve Bank of India in its Press release on August,2,2017, Wednesday, said that the MPC in its third Bi-Monthly Statement for 2017-18, decided to reduce the policy repo rate by 25 basis points. With the above monetary policy decision of reducing the policy rates, the repo rate (the rate at which banks borrow funds from the RBI) stays at 6.00 per cent.
With the above monetary policy decision of Apex Bank to reduce the policy rates, the repo rate (the rate at which banks borrow funds from the RBI) now stays at 6.00 per cent.
The key policy rates:
|CRR (Cash Reserve Ratio)||4.00%|
|SLR (Statutory Liquidity Ratio)
|Reverse Repo Rate||5.75%|
|MSF Rate (Marginal Standing Facility Rate)||6.25%|
It is informed in the RBI’s Press Release that the six members Monetary Policy Committee (MPC) has taken neutral stance in view of 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.Though MPC noted that some of the upside risks to inflation have either reduced or not materialised the baseline path of headline inflation excluding the HRA impact has fallen below the projection made in June to a little above 4 per cent by Q4 which has necessitated them to reduce the policy rates by 25BPS.