RBI’s first bi-monthly monetary policy for 2015-16: Highlights

Source: Economic Times

Following are the highlights of RBI’s first bi-monthly monetary policy statement, 2015-16:

* Short-term lending rate (repo) unchanged at 7.5 pc

* Cash Reserve Ratio unchanged at 4 pc

* Retains Statutory Liquidity Ratio at 21.5 pc

* Estimates GDP growth at 7.8% in FY’16, up from 7.5% in FY’15

* Forecasts CPI inflation at 5.8 pc by March 2016

* CPI inflation to dip to 4 pc in August 2015

* Hailstorms in March affected 17% of the rabi crop sown area

* Future rate cuts will depend on interest rate reduction by banks

* India better prepared to deal with volatility post US Federal Reserve rate action

* State cooperative banks to be allowed to set up off-site/ mobile ATMs without prior approval from RBI

* RBI to formulate scheme for market making by primary dealers in semi-liquid and illiquid G-Secs

* Second bi-monthly policy statement on June 2

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