New Delhi: Second bi-monthly monetary policy is out from the RBI kitty. RBI keeps the repo rate unchanged at 6.25 per cent, reverse repo rate unchanged at 6 percent.
RBI cuts statutory liquidity ratio by 0.5 per cent.
RBI also projects inflation in 2-3.5 per cent range for first half of 2017-18 and 3.5-4.5 per cent for second half.
The repo rate is the rate at which banks borrow from the central bank and has now remained unchanged for the fourth time in a row. Experts have various opinions on this.
Implementation of GST not expected to have material impact on overall inflation.
RBI cuts growth projection for current fiscal to 7.3%, from 7.4%.
Inflation low since November 2016 due to transitory factors, says Urjit Patel, RBI Governor
RBI cautions against rush of farm loan waivers, warns of risk on fiscal slippages and inflationary spillovers.