RBI maintains status quo, keeps key policy rate unchanged
Following are the highlights of the fourth bi-monthly Monetary Policy Statement 2017-18, issued by Reserve Bank of India:
* Key policy rate kept unchanged at 6 per cent.
* Reverse repo rate unchanged at 5.75 pc.
* Cuts economic growth forecast to 6.7% from 7.3% for FY’18
* Projects inflation at 4.2-4.6 pc in the second half.
* GST implementation rendered prospects for the manufacturing sector uncertain in the short term.
* Focus on keeping headline inflation close to 4 pc on a durable basis
* RBI continues to work towards the resolution of stressed corporate exposures in bank balance sheets.
* Recent structural reforms improving business environment, transparency and increasing formalisation of the economy.
* Suggests concerted drive to restart stalled investment projects, enhance ease of doing business, including simplification of the GST to boost growth.
* Suggests rationalisation of “excessively high” stamp duties charged by states, faster rollout of affordable housing programme.
* Next MPC meeting on December 5-6.