RBI keeps repo rate unchanged at 6.25% for first half of 2017-18

Posted on:06 Apr 2017 16:16:48
RBI keeps repo rate unchanged at 6.25% for first half of 2017-18
06 April 2017 Current Affairs: The monetary policy committee (MPC) headed by RBI governor Urjit Patel left the policy lending rate unchanged at 6.25%.

But RBI hiked the borrowing rate or reverse repo to 6% from 5.25% to suck out extra cash. Simply put, this means that RBI will pay a higher interest to banks for parking money with the central bank. For retail customers, this would not have any impact on their borrowings from banks. But it would mean banks would park a larger amount of money with RBI than use it for lending.

The cash reserve ratio, the amount of deposits banks have to keep in cash, stays at 4%.

India’s economic growth is estimated to have slowed to 7.1% in 2016-17 from 7.9% in 2015-16. However, most analysts expect growth to bounce back in 2017-18.

The government’s Economic Survey in February forecast GDP growth to accelerate to 6.75-7.5% in 2017-18.

Current Policy  Rates:-

1) Policy Repo Rate : 6.25%

2) Reverse Repo Rate : 5.75%

3) Marginal Standing Facility Rate : 6.75%

4) Bank Rate : 6.75%

5) cash reserve ratio (CRR) : 4%
The monetary policy committee (MPC) headed by RBI governor Urjit Patel left the policy lending rate unchanged at 6.25%.

But RBI hiked the borrowing rate or reverse repo to 6% from 5.25% to suck out extra cash. Simply put, this means that RBI will pay a higher interest to banks for parking money with the central bank. For retail customers, this would not have any impact on their borrowings from banks. But it would mean banks would park a larger amount of money with RBI than use it for lending.

The cash reserve ratio, the amount of deposits banks have to keep in cash, stays at 4%.

India’s economic growth is estimated to have slowed to 7.1% in 2016-17 from 7.9% in 2015-16. However, most analysts expect growth to bounce back in 2017-18.

The government’s Economic Survey in February forecast GDP growth to accelerate to 6.75-7.5% in 2017-18.

Current Policy  Rates:-

1) Policy Repo Rate : 6.25%

2) Reverse Repo Rate : 5.75%

3) Marginal Standing Facility Rate : 6.75%

4) Bank Rate : 6.75%

5) cash reserve ratio (CRR) : 4%

Monthly Current Affairs

Current Affairs Section

Daily Current Affairs Quiz

Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs 2018 September

20 SEPTEMBER
NEWS
19 SEPTEMBER
NEWS
18 SEPTEMBER
NEWS
17 SEPTEMBER
NEWS

Current Affairs 2018 August

31 AUGUST
NEWS
30 AUGUST
NEWS
29 AUGUST
NEWS
28 AUGUST
NEWS

Current Affairs 2018 July

31 JULY
NEWS
30 JULY
NEWS
29 JULY
NEWS
28 JULY
NEWS