इंडियन आवाज़     16 Feb 2019 01:27:19      انڈین آواز

RBI keeps repo rate unchanged at 6.50%

Key takeaways from fifth bi-monthly policy meet



As expected, the Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) kept the repo rate unchanged at 6.50 per cent in its fifth bi-monthly monetary policy decision of FY19 on Wednesday. The reverse repo rate, also remained unchanged at 6.25 per cent. However, it announced statutory liquidity ratio (SLR) will go down by 25 bps every quarter from January. The marginal standing facility (MSF) rate and the Bank Rate stand at 6.75 per cent.

Inflation projection lowered: Inflation has been projected at 2.7-3.2 per cent for second half of FY2018-19 and 3.8-4.2 per cent for the first half of FY 2019-20, with risks tilted to the upside. “Although recent food inflation prints have surprised on the downside and prices of petroleum products have softened considerably, it is important to monitor their evolution closely and allow heightened short-term uncertainties to be resolved by incoming data,” the statement added. RBI Governor Urjit Patel said fall in crude oil prices will impart downward bias to inflation trajectory. Oil prices have fallen nearly 30 per cent after hitting a high of $86/barrel early October.

Fifth Bi-monthly Monetary Policy Statement, 2018-19
Resolution of the Monetary Policy Committee (MPC)

The stock markets ended nearly 1% lower on Wednesday despite a drastic reduction in the inflation forecast by the Reserve Bank of India (RBI), which kept key interest rates unchanged. Weak global cues also weighed on Indian stocks.

The Sensex ended at 35,884.41, down 249.90 points or 0.69%, while the Nifty closed at 10,782.90, down 86.60 points or 0.80%. Rate sensitives like banks and autos fell, with the BSE Auto index down 2.40% and the BSE Bankex down 1% during the day.

Analysts said investors expected the cut in inflation forecast by the central bank would have led to a less hawkish monetary policy. Maintaining its policy stance as “calibrated tightening”, the RBI’s monetary policy committee (MPC) reduced its inflation projection for the second half of 2018-19 to 2.7-3.2% from 3.9-4.5%, taking into account the fall in food inflation, crude oil prices and an appreciating rupee.

Leave a Reply

Your email address will not be published. Required fields are marked *



Sachin Tendulkar leads Indian sports fraternity to pay emotional homage to CRPF martyrs

Harpal Singh Bedi / New Delhi Cricketer Sachin Tendulkar and champion boxer Vijender Singh led the sports fra ...

PV Sindhu, Vaishnavi Bhale, Ashmita Chaliha enter semi finals of women’s singles in NBC

  In the Senior National Badminton Championship at Guwahati, Olympic silver medallist PV Sindhu sailed i ...

National Badminton C’ships: Lakshya Sen, Harsheel Dani enter 4th round

Young Indian shuttlers Lakshya Sen and Harsheel Dani entered the fourth round of the men's singles competition ...



President Kovind confers PM Rashtriya Bal Puraskar 2019

    AMN / NEW DELHI President Ram Nath Kovind today conferred the Pradhan Mantri Rashtriya ...

Major buildings in India go blue as part of UNICEF’s campaign on World Children’s Day

Our Correspondent / New Delhi Several monuments across India turned blue today Nov 20 – the World Children ...


Indian short film wins award at Clermont-Ferrand Film Festival

  By Utpal Borpujari / New Delhi “Binnu Ka Sapna”, a short film by Kanu Behl of “Titli” fame, ...

Google dedicates doodle to Madhubala on her 86th birth anniversary

Google dedicates doodle to Madhubala on her 86th birth anniversary   One of India's most beautifu ...


@Powered By: Logicsart