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Following are the highlights of RBI’s fifth bi-monthly monetary policy statement, 2016-17:
Repo rate unchanged at 6.25%, Reverse repo at 5.75%
Cash reserve ratio or CRR unchanged at 4%
Cuts growth forecast to 7.1%, from 7.6% for this fiscal
Inflation target remains 5% for March 2017, upside risk
Demonetisation to lower prices of perishables, could reduce inflation by 10-15 basis points by December
All MPC members voted in favour of status quo in policy
Demonetisation to result in short-run disruptions in cash-intensive sectors
Crude price volatility, surge in financial market turbulence could put March end inflation target at risk
Foreign exchange reserve rose to all-time high of $364 billion on December 2
RBI injected Rs 1.1 lakh crore liquidity through OMO purchases this fiscal
Next monetary policy on February 8.
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