Moneycontrol
Last Updated : Feb 14, 2018 04:09 PM IST | Source: Moneycontrol.com

Slideshow: Key takeaways from RBI Policy Meet

The Monetary Policy Committee kept the repo rate unchanged and increased the inflation forecast in the February meeting. Here are the key takeaways.

The RBI kept the benchmark repo rate at 6% and raised inflation forecast.
1/15

The RBI kept the benchmark repo rate at 6% and raised inflation forecast.

Economic optimism, falling unemployment and low interest rates supporting recovery.
2/15

Economic optimism, falling unemployment and low interest rates supporting recovery.

Global trade continues to expand, underpinned by strong investment and robust manufacturing activity.
3/15

Global trade continues to expand, underpinned by strong investment and robust manufacturing activity.

Financial markets are volatile of late due to uncertainty across the globe such as the pace of US Fed rate hikes. The strong US January employment data points to fasten pace of hikes.
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Financial markets are volatile of late due to uncertainty across the globe such as the pace of US Fed rate hikes. The strong US January employment data points to fasten pace of hikes.

CSO estimates showed GVA decelerating to 6.1 percent in 2017-18 from 6.6 percent in 2016-17 due mainly to slowdown in key sectors - agriculture, mining, among others.
5/15

CSO estimates showed GVA decelerating to 6.1 percent in 2017-18 from 6.6 percent in 2016-17 due mainly to slowdown in key sectors - agriculture, mining, among others.

 Commercial vehicle sales growth at eight-year high in December; cargo movement up in November, mixed in December.
6/15

Commercial vehicle sales growth at eight-year high in December; cargo movement up in November, mixed in December.

Retail inflation up sixth consecutive month in December, due to low base effect, higher food and fuel prices, housing inflation due to higher house rent allowances.
7/15

Retail inflation up sixth consecutive month in December, due to low base effect, higher food and fuel prices, housing inflation due to higher house rent allowances.

December quarter average inflation at 4.6 percent, and March quarter estimated at 5.1 percent
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December quarter average inflation at 4.6 percent, and March quarter estimated at 5.1 percent

Households’ inflation expectations, measured by the Reserve Bank’s survey of households, stay elevated for both three-month ahead and one-year ahead.
9/15

Households’ inflation expectations, measured by the Reserve Bank’s survey of households, stay elevated for both three-month ahead and one-year ahead.

Liquidity in the system continues to be in surplus mode.
10/15

Liquidity in the system continues to be in surplus mode.

Merchandise exports rebound in November and December, led by petroleum products, engineering goods and chemicals. Exports of readymade garments contracted.
11/15

Merchandise exports rebound in November and December, led by petroleum products, engineering goods and chemicals. Exports of readymade garments contracted.

CPI inflation for first half of 2018-19 estimated in the range of 5.1-5.6 per cent. Second half inflation estimated at 4.5-4.6 percent, with risks tilted to the upside.
12/15

CPI inflation for first half of 2018-19 estimated in the range of 5.1-5.6 per cent. Second half inflation estimated at 4.5-4.6 percent, with risks tilted to the upside.

GVA growth for 2017-18 projected at 6.6 per cent, down from the previous projection of 6.7 percent.
13/15

GVA growth for 2017-18 projected at 6.6 per cent, down from the previous projection of 6.7 percent.

RBI to continue with neutral stance, reaffirms commitment to keep headline inflation close to 4 per cent on a durable basis.
14/15

RBI to continue with neutral stance, reaffirms commitment to keep headline inflation close to 4 per cent on a durable basis.

Economy on recovery path, including early signs of a revival of investment activity.
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Economy on recovery path, including early signs of a revival of investment activity.

First Published on Feb 7, 2018 04:38 pm
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