Following are the highlights of RBI’s fifth bi-monthly monetary policy statement for 2015-16.
Benchmark policy rate unchanged at 6.75%
Economy in early stages of recovery, weakness persists
Farm sector subdued; rabi, kharif prospect hit by monsoon
Retail inflation at 6% by January, 5% by March 2017
Inflation uptick for 2 months warrants vigilance
Open to accommodative monetary policy, keeping inflation under control
Implementation of Pay Panel recommendations to be factored in for future policy deliberation
Banks transmitted only 0.60 pc of 1.25 pc repo rate cut benefits to borrowers
To shortly finalise base rate computation based on marginal cost of funds
Clean up of bank balance sheets will create room for fresh lending
Linking of small savings rate with market interest rates on anvil, to help in monetary transmission
Early signs of recovery in pharma, electronic exports
Sixth Bi—monthly Monetary Policy on February 2