Sixth Bi-monthly Monetary Policy Statement, 2017-18

Sixth Bi-monthly Monetary Policy Statement, 2017-18

Question- On February 7th, 2018, the Governor of Reserve Bank of India Dr Urjit Patel and Monetary Policy Committee (MPC) released the sixth bi-monthly monetary policy statement, 2017-18. According to what percentage of the policy repo rate has been retained?
(a) 6.25 percent
(b) 6.50 percent
(c) 6.75 percent
(d) 6.0 percent
Answer: (d)
Related Facts:

  • On February 7th, 2018, Governor of Reserve Bank of India, Dr. Urjit Patel and Monetary Policy Committee (MPC) released sixth bi-monthly monetary policy statement, 2017-18.
  • Reserve Bank of India has kept policy rates, reserve cash ratio, net demand and periodic liabilities unchanged in the sixth bi-monthly monetary policy statement.
  • Policy repo rate under the liquidity adjustment facility (LAF) kept unchanged at 6.0 per cent.
  • Earlier, on December 6th, 2017, the fifth bi-monthly policy had been issued, in which policy rates were kept unchanged.
  • It is known that in the third bi-monetary policy statement, 2017-18 issued on August 2nd, 2017 the RBI had reduced the policy repo rate from 6.25 percent to 6.0 percent by decreasing basis points by 25.
  • The Statutory Liquidity Ratio (SLR) of scheduled commercial banks is kept unchanged at 19.50 percent.
  • Keeping the Cash Reserve Ratio (CRR) of scheduled commercial banks unchanged, it retained 4 percent of Net Demand and Time Liabilities (NDTL).
  • As a result, the Reverse Repo Rate under the liquidity adjustment facility is 5.75 and the Marginal Standing Facility Rate (MSF) and Bank Rate is 6.25 percent.
  • The real gross value added (GVA) growth as per the first advance estimates (FAE) released by the Central Statistics Office (CSO) is estimated to decelerate to 6.1 per cent in 2017-18 from 7.1 per cent in 2016-17.
  • Turning to the growth outlook, GVA growth for 2017-18 is projected at 6.6 per cent.

Reference:
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=43078