RBI Monetary Policy Meet: Know major highlights

HYDERABAD, India - Aug. 8, 2019 - PRLog -- Economy News: Following are the highlights of RBI's third monetary policy review for the current fiscal unveiled on Wednesday:
As the wholesale and retail inflations for June - 2.02% and 3.18% respectively - are well within the mandated limit of 4%, it will prompt the RBI to cut the repo rate further.

• RBI cuts key interest rate (repo) by an unusual 35 basis points (0.35 percentage points) to 5.40 per cent
• Reverse repo rate has been revised to 5.15 per cent
• From December 2019 National Electronic Funds Transfer (NEFT) to be 24*7
• The marginal standing facility (MSF) rate and bank rate stands at 5.65 per cent
• Maintains the accommodative policy stance
• Cuts GDP forecast to 6.9 per cent for the current fiscal from 7 per cent in June policy
• Keeps retail inflation forecast within target of 3.5-3.7 per cent for second half of 2019-20
• Four members voted for cut of 35 basis points in rate; two members voted for 25 basis points rate cut
• Boosting aggregate demand, private investment assumes highest priority
• Next monetary policy statement on October 4

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