The Things You Should Know

The Monetary Policy Committee (MPC) of RBI announced first Bi-Monthly policy for the fiscal 2020-21. MPC voted for key rate cut o n the basis of an assessment of the current and evolving macroeconomic situation. MPC reduced the policy repo rate under the liquidity adjustment facility (LAF) by 40  basis points  to  4.00 per cent  from 4.40 per cent. The MPC also decided to continue with the  accommodative  stance as long as it is necessary to revive growth and mitigate the impact of coronavirus (COVID-19) on the economy, while ensuring that inflation remains within the target.   A ll members of the MPC  unanimously decided to reduce the policy repo rate  and to maintain the accommodative stance of monetary policy.  Dr. Pami Dua, Dr. Ravindra H. Dholakia, Dr. Janak Raj, Dr. Michael Debabrata Patra and Shri Shaktikanta Das voted for a reduction in the policy repo rate by 40 bps, while Dr. Chetan Ghate voted for a reduction by 25 bps...

The Monetary Policy Committee (MPC) of RBI announced fifth Bi-Monthly policy for the fiscal 2019-20. After the back to back rate cuts, this time MPC surprised with no rate change.  On the basis of an assessment of the current and evolving macroeconomic situation, the   MPC  kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15 per cent . All members of the MPC – Dr. Chetan Ghate, Dr. Pami Dua, Dr. Ravindra H. Dholakia, Dr. Michael Debabrata Patra, Shri Bibhu Prasad Kanungo and Shri Shaktikanta Das – voted in favour of the decision. Forecast:- The CPI inflation projection is revised upwards to  5.1 - 4.7 per cent  for H2: 2019-20 and  4.0-3.8 per cent  for H1: 2020-21, with risks broadly balanced. Real GDP growth for 2019-20 is revised downwards from 6.1 per cent in the October policy to  5.0 per cent  –  4.9-5.5 per cent  in H2: 2019-20 and ...