Question: What is the Repo Rate, decided by the RBI in the latest Monetary Policy review on June 7, 2019 which is the lowest since 2010?
- At the end of a three-day MPC meeting on June 7, 2019, RBI Governor Shaktikanta Das announced its second bi-monthly monetary policy statement for 2019-20.
- Among all the decisions taken, the Repo Rate was decided to be decreased further to 5.75% with a 25 point cut due to slowing economic growth and rising global uncertainty.
- This is the third continuous decrease in the Repo Rate which makes it the lowest since 2010.
Important Highlights of the Policy:
- The Reverse repo rate is now 5.50 % and Marginal Standing Facility (MSF) rate is 6 %.
- RBI changes policy stance to accommodative from neutral
- It has also decreased the GDP growth forecast of economy to 7 % from 7.2 % for FY 2020
- The retail inflation forecast for April-September 2019 is raised to 3-3.1 per cent and 3.4-3.7 per cent in October-March 2020.
- The risk of inflation is estimated due to uncertain monsoon, unseasonal rise in vegetable prices, crude oil prices, financial market volatility and fiscal scenario.
- RTGS and NEFT charges are waived to promote digital transactions.
- A new panel will be set up to review ATM charges, fees levied by banks.
- Average daily surplus liquidity in the system at ₹ 66,000 crore in early June
- Foreign Exchange Reserves stood at USD 421.9 billion on May 31, 2019
- Next monetary policy statement on August 7, 2019.