New Delhi: Reserve Bank of India (RBI) on tuesday lowered its short-term lending rate by 25 basis points in a move that could potentially reduce the cost of borrowings on personal and corporate loans. In his bi-monthly monetary policy review for the current fiscal year at the RBI headquarters Governor Raghuram Rajan elaborately spoke on the policies and steps taken by the Central Bank of India
Here are the top 10 talking points of Monetary Policy Review
1.The RBI Governor keeps short-term lending rate (repo) cut by 0.25 pc to 7.25 %.
2.Raghuram Rajan retains Statutory Liquidity Ratio at 21.5 %
3.The cash reserve ratio (CRR), the quantum of funds commercial banks have to keep in the form of cash or government bonds, has been left unchanged at 4 percent of deposits.
4.Raghuram Rajan expects inflation to rise to 6 %by January 2016
5. The reverse repo rate under the liquidity adjustment facility (LAF) stands adjusted to 6.25 percent; Bank rate down to 8.25 pc from 8.5 pc
6. Raghuram Rajan said strong food policy management needed to keep inflation and inflationary expectations under check
7. The RBI Governor lowers economic growth forecast to 7.6 % for 2015-16 from 7.8 % projected in April
8.Raghuram Rajan asks banks to pass on benefit of rate cuts to borrowers
9. The RBI Governor said targeted infusion of bank capital into PSU banks needed to ensure credit flows to productive sectors
10. Raghuram Rajan said third bi-monthly policy statement would be on August 4
