RBI keeps repo rate unchanged at 6 percent, stance stays at 'neutral'

Adjust Comment Print

The policy repo rate is kept unchanged at 6%, which is the lowest since November 2010.

The Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel said that growth rate will accelerate to 7.4 percent in 2018-19, up from 6.6 percent last fiscal, ended March 31, mainly on account of revival of investment activity.

The central bank's six-member Monetary Policy Committee (MPC) in its bi-monthly Monetary Policy Statement, noted that the April-June GDP growth is seen at 7.1 percent, and the July-September GDP growth is seen at 7.4 percent.

GDP growth is projected to strengthen from 6.6% in FY18 to 7.4% in FY19 in the range of 7.3-7.4% in H1FY19 and 7.3-7.6% in H2FY19 with risks evenly balanced, the central bank said on Thursday. Repo rate is used by monetary authorities to control inflation.

Four presumed dead in California military helicopter crash
The aircraft is the "Marine Corps' primary heavy lift helicopter and has been in service for over 30 years", the website states. A Marine Corp helicopter reportedly crashed in Southern California on Tuesday - and four members were believed to be dead.

"Ongoing normalisation of interest rates in the United States, higher global crude oil prices, and the looming threat of escalation in global trade war warranted a cautious approach".

This is especially important given the reduced ability of banks to undertake corporate lending as RBI's new NPA (non-performing asset) Resolution Framework, though structurally positive, will push up lenders' credit costs and undermine capital adequacy.

The state-run bank index jumped 4.9 percent and the main market index closed up 1.94 percent.

But many economists doubt whether that pace can be sustained. This marks a reduction from its February forecast of 5.1 percent to 5.6 percent in the first half and 4.5 percent to 4.6 percent in the second half.

Tag: Gender Pay Gap
Reporting is the first step in tackling the gender pay gap , a priority business issue that is holding us all back. Some journalists at the site were said to be "disappointed" they were choosing not to make their figures public.

The decision helped extend a rally in the bond market, triggered last week by the government's decision to cut its first-half borrowing plans and after the RBI on Monday allowed lenders to spread their debt market losses over four quarters.

Rajesh Shah, Ficci President, said: "While the Reserve Bank of India has maintained status quo in current monetary policy statement, we hope that RBI will soon consider cut in policy rate and give a further boost to demand and investments".

While inflation fears have eased in the short term, the RBI sounded cautious and opted to wait for more data instead of giving a clear indication of its policy path.

"However, MPC looks ahead".

UK's Prince Philip recovering after hip surgery
He retired from public life previous year but has since appeared several times at royal engagements alongside Queen Elizabeth. In 2016, he represented the royal family at 200 engagements.

In its February policy review meeting, the MPC, in its hawkish approach, had kept repo rate unchanged at 6 per cent.

Comments