RBI fifth bi-monthly Monetary Policy released

The Reserve Bank of India on December 5, 2019, released its fifth bi-monthly monetary policy statement for the year 2019-20.

Highlights

According to the policy, the repo rate was unchanged at 5.15%. Last time, it was cut by 135 basis points to a 9-year low. Accordingly, the reverse repo rate stood at 4.9% and the bank rate stood at 5.4%. The CPI projection was increased to 4.7% to 5.1%. It is to be noted that RBI is currently following target inflation at 4% with a band of ±2 per cent.

The Monetary Policy Committee said that the global economic activity has subdued since its last meeting.

Other Assessment of the committee

Among the other emerging markets, growth of China has decelerated in the Q3 and its exports have declined greatly mainly due to trade tensions with the US. The GDP growth of Russia and Brazil in the Q3 has accelerated. It was mainly due to agricultural output and industrial activities.

Month: Current Affairs - December, 2019