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The Reserve Bank of India's Monetary Policy Committee (MPC) headed by RBI Governor Urjit Patel, today (6th February 2018) presented it's sixth and final bi-monthly monetary policy for the current financial year. In view of firming inflation, the central bank kept the repo rate - the key rate at which the RBI lends to other banks - unchanged at 6 per cent. The reverse repo rate under the LAF (liquidity adjustment facility) remains at 5.75 per cent, and the marginal standing facility (MSF) rate and the bank rate at 6.25 per cent. Here are the major highlights of today's monetary policy statement.
RBI's 6th bi-monthly monetary policy review highlights
- Key lending rate (repo) unchanged at 6 percent.
- Reverse repo rate remains at 5.75 percent and marginal standing facility (MSF) rate and Bank Rate at 6.25 percent.
- Monetary policy's stance neutral.
- Petrol and diesel prices rose sharply in Jan, reflecting lagged pass-through of past increases in global crude prices.
- Retail inflation estimated at 5.1 percent in Q4 this fiscal and 5.1-5.6 percent in H1 of FY2018-19.
- Inflation likely to ease to 4.5-4.6 percent in H2 of FY19.
- Gross Value Added (GVA) growth for FY18 seen at 6.6 percent.