RBI mid-quarter monetary policy review highlights: In its mid-quarter monetary policy review RBI surprised everybody by leaving key rates unchanged to back growth but at the same time RBI has also warned that they may be hiked if inflation does not subside.
We are providing you important points of mid-quarter monetary policy review mid-quarter monetary policy review which are very important for upcoming exams and interviews.
Following are the highlights of RBI’s mid-quarter review of monetary policy:
- RBI kept key policy rate, cash reserve ratio unchanged.
- Repo rate unchanged at 7.75%; cash reserve ratio unchanged at 4%.
- Outlook on global growth continues to remain moderate.
- RBI expects inflation to be contained on vegetable prices going down sharply.
- High and persistent inflation also increases the risks of exchange rate instability.
Remark: The repo rate is the rate at which banks borrow from the RBI while CRR is the slice of deposits that banks have to compulsorily park with the RBI.