RBI Credit Policy: The Reserve Bank of India (RBI) has announced first quarter review of monetary policy. For aspirants, preparing for bank exams and for bank and other interviews it is very important to be well aware about it. We are here providing you the key highlights of RBI Credit Policy.
- The central bank kept the REPO rate, the rate at which it lends to commercial banks, unchanged at 8%.
- The reverse REPO rate, the rate at which the apex bank borrows money from commercial banks, was also stayed unchanged at 7%.
- Cash reserve ratio for banks also remained unchanged at 4.75 per cent. CRR is the share of deposits banks must keep with the RBI.
- The Reserve Bank of India cut the statutory liquidity ratio by a percentage point to 23% to increase the flow of credit to industry. Lowering of SLR could bring down market interest rates as it would release close to Rs. 55,000 crores into the system.
What the Governor has said on first quarter monetary policy review? “The primary focus of monetary policy remains inflation control in order to secure a sustainable growth path over the medium-term. Lowering policy rates (now) will only aggravate inflationary impulses without necessarily stimulating growth,”