In its monetary policy reviews, the Reserve Bank of India (RBI) on Wednesday opted for a status quo in its key rates for the second time in a row. However, it shifted the stance of the monetary policy from ‘accommodative’ to ‘neutral’.
“The decision of the Monetary Policy Committee (MPC) is consistent with a neutral stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by Q4 of 2016-17 and the medium-term target of 4 per cent within a band of +/- 2 per cent, while supporting growth,” it said.
Below are the key highlights of RBI’s monetary policy review:
#Total 9.92 lakh crore rupees of total currency including new notes of 500 & 2000 is in circulation as of 27th January
#Both new notes of Rs.2000 and Rs.500 are difficult to copy, the ones being found are photo copies
#From 13 March there will be no limit on cash withdrawal from savings bank accounts: RBI
#Limit on cash withdrawal from savings backs accounts to be relaxed in 2 stages. From 20 Feb limit to be increased from Rs 24k to Rs 50k
#Repo Rate unchanged at 6.25 per cent
#Reverse Repo Rate also remains unchanged at 5.75 per cent
#RBI says expected growth is 6.9 percent for 2016-17 fiscal year ending in the month of March
#Expected growth for fiscal year 2017-18 estimated at 7.4 percent
#January-March retail inflation below 5 per cent