CURRENT UPDATE : RBI- FIFTH BI-MONTHLY MONETARY POLICY STATEMENT, 2016-17

FIFTH BI-MONTHLY MONETARY POLICY STATEMENT, 2016-17 RESOLUTION OF THE MONETARY POLICY COMMITTEE (MPC)

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today (07-12-2016), the Monetary Policy Committee (MPC) decided to:

·         Keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.25 per cent.

Consequently, the reverse repo rate under the LAF remains unchanged at 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent.

The decision of the MPC is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by Q4 of 2016-17 and the medium-term target of 4 per cent within a band of +/- 2 per cent, while supporting growth.

CURRENT RATES
POLICY RATES	BANK RATE	6.75 %
	REPO RATE	6.25 %
	REVERSE REPO RATE	5.75 %
	MARGINAL STANDING FACILITY RATE	6.75 %
RESERVE RATIO	CRR	4%
	SLR	20.75 %
LENDING RATE	BASE RATE	9.30% - 9.65%

The next meeting of the MPC is scheduled on February 7 & 8, 2017 and its resolution will be placed on the Reserve Bank’s website on February 8, 2017.