This time also RBI MPC held for 3 days from 30th July 2018 to 1st June 2018.
RBI hikes 0.25% Bps, New REPO Rate is 6.50%, and Reverse REPO Rate is 6.25%
FY 2019 GDP forecast retained at 7.4%
MSF rate stands @ 6.75%
July – Sep inflation seen @ 4.2%
Oct – Mar CPI inflation seen @ 4.8%
MPC keeps policy neutral stance
MSP hike to have second round impact on CPI.
- Inflation is now projected at 4.6% in July-September, 4.8% in October-March (2018-19) and 5% in April-June 2019, with risks evenly balanced.
- Experts opined that the government’s decision to substantially hike the minimum support price for Kharif crop will have an adverse impact on inflation.
- RBI that all scheduled commercial banks (excluding Regional Rural Banks and Small Finance Banks) may co-originate loans with NBFCs – Non-Deposit taking- Systemically Important (NBFC-ND-SIs), for the creation of eligible priority sector assets.
- To enhance the independence of the internal Ombudsman in banks to strengthen the monitoring system over functions.
- Economists expect one more rate hike during the fourth quarter of FY19.
Next RBI MPC meeting is scheduled from 03/10/2018 to 05/10/2018.
