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Following are the highlights of the first bi-monthly monetary policy for 2017-18 as announced by the RBI:
Policy repo rate unchanged at 6.25%, hikes reverse repo to 6%
Narrows policy rates corridor due to increased liquidity, post demonetisation
Pegs GVA growth for current fiscal at 7.4% as against 6.7% last year
Revises MSF, bank rate to 6.5%
Retail inflation in first half seen at 4.5%, 5% in second half
Economic indicators point to modest improvement in microeconomic outlook
Risk evenly balanced around inflation trajectory; upside risk from uncertainty about monsoon
Upside risk to inflation from GST, poor monsoon, pay commission award
Further scope for a more complete transmission of policy rates remains, including for small savings rates
All six MPC members voted in favour of RBI monetary policy
The next meeting of the Monetary Policy Committee on June 5 and 6.
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