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Key highlights of RBI's first bi-monthly monetary policy review

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IANS New Delhi
Last Updated : Apr 05 2016 | 4:23 PM IST

The following are the highlights of the Reserve Bank of India's first bi-monthly policy review:

** Repo rate was reduced by 25 basis points from 6.75 percent to 6.5 percent.

** The cash reserve ratio (CRR), which is the quantum of liquid funds against deposits which commercial banks have to hold, has been left unchanged at 4 percent.

** The minimum daily maintenance of CRR has been cut to 90 percent from 95 percent.

** Reverse repo rate has been increased to 6 percent from 5.75 percent.

** GDP growth is projected to improve gradually to 7.6 percent in 2016-17.

** Retail inflation is projected to moderate in 2016-17 to around 5 percent.

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** The marginal standing facility (MSF) rate stands at 7 percent.

** The bank rate which is aligned to the MSF rate stands at 7 percent.

** The policy rate corridor narrowed from 100 basis points (bps) to 50 bps.

** The statutory liquidity ratio, or the value of specified securities which commercial banks have to subscribe to, is at 21.25 percent, effective from April 2.

** Seventh Pay Commission award to put upward pressure on inflation

** Second bi-monthly monetary policy on June 7

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First Published: Apr 05 2016 | 4:18 PM IST

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