MPC cuts interest rate by a quarter point

This was the first monetary policy statement of the new RBI governor Urjit Patel

GN Bureau | October 4, 2016


#interest rates   #monetary policy   #Reserve Bank of India   #Urijit Patel   #RBI   #repo rates  
Reserve Bank of India
Reserve Bank of India

In the fourth bi-monthly monetary policy statement, the Reserve Bank of India’s monetary policy committee (MPC) reduced the repo rate by 25 basis points, from 6.5 percent to 6.25 percent. The MPC, headed by the newly appointed RBI governor Urjit Patel, said that its decision was “consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 percent by Q4 of 2016-17 and the medium-term target of 4 percent within a band of +/- 2 per cent, while supporting growth”.

The committee, which has three eminent economists as independent members, said it expected that the strong improvement in sowing, along with supply management measures, would improve the food inflation outlook. “The government has announced several measures to cool food inflation pressures, especially with regard to pulses. These measures should help in moderating the momentum of food inflation in the months ahead,” the MPC said.

The committee added that the momentum of growth is expected to quicken with a normal monsoon raising agricultural growth and rural demand, as well as by the stimulus to the urban consumption spending from the pay commission’s award. “The accommodative stance of monetary policy and comfortable liquidity conditions should support a revival of credit to the productive sectors,” it said.
 

Comments

 

Other News

Jal Jeevan Mission: 6.70 crore households provided with tap water connections

Since August 2019, Government of India, in partnership with States, is implementing Jal Jeevan Mission (JJM) to make provision of potable tap water supply every rural household by 2024. As many as 6.70 crore households have been provided with tap water connections in the 35 months, since Aug

Cloud inclusivity: Ensuring highly regulated organisations are ready for a cloud-first world

Over the last few years, cloud has been able to create a special place for itself amongst fast moving, competitive and growth-led organisations. As the technology became an imperative, it has undoubtedly created unique business opportunities and isbecoming an anchor for innovation for leading businesses gl

1.29 crore voters chose NOTA in five years

None-of-the-above, or NOTA – the option introduced for voters in 2013 when they don’t want to support any of the candidate – has made some progress. In the past five years, NOTA has secured 1,29,77,627 votes in state assembly elections and Lok Sabha election, according to an analysis by t

India committs to reduce Emissions Intensity of GDP by 45% by 2030

India stands committed to reduce Emissions Intensity of its GDP by 45 percent from the 2005 level by 2030 and achieve about 50 percent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. The country’s India’s updated Nationally Determined Contributi

5G spectrum auction grosses Rs. 1,50,173 crore

The government had put 72,098 MHz spectrum to auction, of which 51,236 MHz (71% of the total) has been sold with bid amounting to Rs. 1,50,173 crore. Adani Data Networks Ltd has obtained 400 MHz spectrum in mm wave band (26 GHz). Bharti Airtel Ltd has obtained 19,867.8 MHz in 900, 1800, 2100

Delhi has been getting hotter since 2020

A steep rise has been recorded over the past three years in pre-monsoon surface air temperature, land surface temperature and relative humidity in Delhi/NCR, whereas there is no such increase in relative humidity. This is a cause of concern, Dr Jitendra Singh, minister of state (independent

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter