Important Highlights Of Urjit Patel First RBI Monetary Policy Committee Meet - New Repo Rate Oct 2016

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Reserve Bank of India Governor Urjit Patel cut interest rates by a quarter point as forecast by economists citing softening inflation outlook and retained growth forecast but said outlook is improving with good monsoon. All six of the monetary policy committee unanimously voted in favor of the rate cut. 


Important Highlights Of First RBI Monetary Policy Committee


The RBI cut the short-term lending rate by 25 bps to  to six-year low of 6.25% from 6.50% earlier. The decision of the MPC is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5%.

The 6-member Monetary Policy Committee, headed by Patel, reduced repo rate or the short term rate at which central bank lends to banks, to 6.25 per cent. Consequently, the reverse repo rate has also come down by a similar percentage point to 5.75 per cent.

New interest repo rates first monetary policy urjit patel commitee oct 2016


The Reserve Bank of India also said that the growth momentum in the economy would continue. "The momentum of growth is expected to quicken with a normal monsoon raising agricultural growth and rural demand, as well as by the stimulus to the urban consumption spending from the pay commission’s award,” it said. 
Taking into account these shocks to the baseline and given the initial conditions in staff projects inflation to ease modestly through 2017-18 and reach 4.5 per cent by Q4 of 2017-18 (2.1 per cent to 7.7 per cent defining the 70 per cent confidence interval). 

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Tags : Important Highlights Of Urjit Patel First RBI Monetary Policy Committee Meet - New Repo Rate Oct 2016 Reserve Bank of India Governor Urjit Patel cut interest rates by a quarter point as forecast by economists citing softening inflation outlook and retained growth forecast but said outlook is improving with good monsoon.

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