{"id":3574,"date":"2019-06-06T22:17:13","date_gmt":"2019-06-06T16:47:13","guid":{"rendered":"http:\/\/yourcareerheights.com\/?p=3574"},"modified":"2019-06-07T02:17:18","modified_gmt":"2019-06-06T20:47:18","slug":"rbis-iind-bi-monthly-monetary-policy-review-as-on-6th-june-2019","status":"publish","type":"post","link":"https:\/\/yourcareerheights.com\/?p=3574","title":{"rendered":"RBI’s IInd Bi-Monthly Monetary Policy Review as on 6th June 2019"},"content":{"rendered":"
\n
\n\t
\n
\n

- RBI cuts repo rate for 3rd time in a row by 25 bps to 5.75%. The repo rate, which now stands at 5.75 per cent, is the lowest since July 2010.
\n- RBI delivers another rate cut, shifts policy stance to 'accommodative'.<\/h3>\n

The Reserve Bank of India (RBI) on Thursday the 6th June 2019, cut key policy rates by 25 basis points, the third consecutive time it has done so. The repo rate - the key interest rate at which the RBI lends to the banks - will now be 5.75%. The central bank has also changed its stance to \u2018accommodative\u2019 from \u2018neutral\u2019. The rate cut decision came after the central bank\u2019s Monetary Policy Committee (MPC) concluded its second bi-monthly monetary policy review for 2019-20. The decision of the rate cut was unanimous.<\/p>\n

\u201cOn the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 5.75 per cent from 6 per cent with immediate effect,\u201d the RBI said after the second bi-monthly meeting of the MPC for 2019-20.<\/p>\n

Following are the Highlights of IInd Monetary Policy announced on 6th June 2019<\/strong>:<\/p>\n

* Repo rate reduced by 25 bps to 5.75 per cent for third time in a row<\/p>\n

* Reverse repo rate now stands at 5.50 per cent, marginal standing facility (MSF) rate 6 per cent<\/p>\n

* RBI changes policy stance to accommodative from neutral<\/p>\n

* Cuts GDP growth forecast to 7 per cent from 7.2 per cent for FY20<\/p>\n

* Raises retail inflation forecast for April-September to 3-3.1 per cent and 3.4-3.7 per cent in October-March<\/p>\n

* Projects upward bias in food inflation in near term due to rising prices of food items<\/p>\n

* Forecast risks to inflation trajectory from monsoon uncertainties, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario<\/p>\n

* Waives RTGS and NEFT charges to promote digital transactions<\/p>\n

* Sets up a panel to review ATM charges, fees levied by banks<\/p>\n

* To issue draft guidelines for \u2018on tap\u2019 licensing of small finance banks by August<\/p>\n

* Flags sharp slowdown in investments, moderation in private consumption growth as concern<\/p>\n

* All six MPC members voted in favour of 0.25 per cent policy rate cut<\/p>\n

* Average daily surplus liquidity in the system at\u00a0\u20b9<\/span>\u00a066,000 crore in early June<\/p>\n

* Foreign Exchange Reserves stood at USD 421.9 billion on May 31, 2019<\/p>\n

* Next monetary policy statement on August 7.<\/p>\n

\u201cThe MPC notes that growth impulses have weakened significantly as reflected in further widening of the output gap compared since April 2019 policy. A sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern,\u201d RBI said in a statement.<\/p>\n