The following are the highlights of the second bi-monthly monetary policy announced by the RBI on Thursday:
- Repo rate reduced by 25 bps to 5.75 pc for third time in a row
- Reverse repo rate now stands at 5.50 pc, marginal standing facility (MSF) rate 6 pc
- RBI changes policy stance to accommodative from neutral
- Cuts GDP growth forecast to 7pc from 7.2 pc for FY20
- Raises retail inflation forecast for Apr-Sept to 3-3.1 pc and 3.4-3.7 pc in Oct-Mar
- Projects upward bias in food inflation in near term due to rising prices of food items
- Forecast risks to inflation trajectory from monsoon uncertainties, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario
- Waives RTGS and NEFT charges to promote digital transactions
- Sets up a panel to review ATM charges, fees levied by banks
- To issue draft guidelines for 'on tap' licensing of small finance banks by Aug
- Flags sharp slowdown in investments, moderation in private consumption growth as concern
- All six MPC members voted in favour of 0.25 pc policy rate cut
- Average daily surplus liquidity in the system at Rs 66,000 crore in early June
- Foreign Exchange Reserves stood at USD 421.9 billion on May 31, 2019
- The next monetary policy statement is scheduled for August 7.
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