Key highlights of recent Monetary Policy Review:
- The repo rate reduced by 25 basis points to 5.75 % from 6.0 % with immediate effect. With this, Repo rate has been reduced to a 9-year low.
- The reverse repo rate stands adjusted to 5.50 %.
- The marginal standing facility rate and the Bank Rate stands adjusted to 6.0 %.
- The stance of monetary policy changed from neutral to accommodative.
- Taking into account the weak global demand due to the escalation in trade wars and weakened private consumption in rural areas, the RBI has lowered the GDP growth forecast for 2019-20 to 7 % from 7.2 %.
- With a view to boosting digital transactions, RBI has decided to do away with charges levied on RTGS and NEFT transactions and banks will be required to pass this benefit to their customers.
- The RBI has pegged the inflation rate at 3.0-3.1 % for April-September and 3.4-3.7 % for the October-March period.
