FreeCurrencyRates.com

इंडियन आवाज़     11 Dec 2018 11:01:24      انڈین آواز
Ad

RBI keeps repo rate unchanged at 6.50%

Key takeaways from fifth bi-monthly policy meet

 

AMN / MUMBAI

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Your email address will not be published.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 *

Ad
Ad

SPORTS

England oust New Zealand 2-0 to book quarter final berth in Hockey World Cup

  Harpal Singh Bedi / Bhubaneswar Scoring once in each half, England ousted New Zealand 2-0 in the ...

Hockey World Cup: Lowest ranked France pip China 1-0 for quarter final

  Harpal Singh Bedi / Bhubaneswar Riding on Timothee Clement’s opportunistic goal lowest ranked F ...

India beat Australia by 31 runs in Adelaide test

  Adelaide India beat Australia by 31 runs in the first Test to take a 1-0 lead in the four-match s ...

Ad

MARQUEE

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 ...

US school students discuss ways to gun control

             Students  discuss strategies on legislation, communities, schools, and mental health and ...

CINEMA /TV/ ART

Malayalam, Ladakhi films win big at IFFI

By Utpal Borpujari / Panaji (Goa) Indian cinema scored big at the 49th International Film Festival of India ( ...

Bollywood playback singer Mohammad Aziz passes away

WEB DESK Well known Bollywood playback singer Mohammad Aziz passed away in Mumbai today. He was 64. The singe ...

Ad

@Powered By: Logicsart