{"id":86301,"date":"2019-10-05T18:35:38","date_gmt":"2019-10-05T13:05:38","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=10680"},"modified":"2019-10-05T18:35:38","modified_gmt":"2019-10-05T13:05:38","slug":"fourth-bi-monthly-monetary-policy-review","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/fourth-bi-monthly-monetary-policy-review\/","title":{"rendered":"Fourth Bi-monthly monetary policy review"},"content":{"rendered":"\n<p><strong>News:<\/strong>The Monetary Policy Committee of the Reserve Bank of India(RBI) has cut the key policy rate by 25 basis points to 5.15 %.<br><\/p>\n\n\n\n<p><strong>Facts:<\/strong><br><\/p>\n\n\n\n<p><strong>Highlights of the Monetary policy:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The Reserve Bank of India\u2019s(RBI) Monetary Policy Committee(MPC) has decided to reduce the policy repo rate under the liquidity adjustment facility(LAF) by 25 basis points to 5.15 % from 5.40 %.<\/li><li>Consequently,the reverse repo rate under the LAF also stands reduced to 4.90 %.<\/li><li>The MPC has also decided to continue with an accommodative stance as long as it is necessary to revive growth while ensuring that inflation remains within the target.<\/li><li>RBI has also revised its growth forecast for the current financial to 6.1% from 6.9% projected in the August policy.<\/li><li>Further,the growth forecast for the first quarter of the next financial year was also reduced to 7.2% from 7.4%.<\/li><\/ul>\n\n\n\n<p><strong>Additional information:<\/strong><br><\/p>\n\n\n\n<p><strong>About Monetary Policy Committee(MPC):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The Monetary Policy Committee(MPC) is a committee of the Reserve Bank of India.<\/li><li>The MPC is made up of six members with three nominated by the Union government and three representing the RBI.<\/li><li>The MPC is mandated by law to ensure that retail inflation stays within a band of two percentage points of the target inflation rate of 4%.<\/li><\/ul>\n\n\n\n<p><strong>About Liquidity Adjustment Facility (LAF):&nbsp;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>LAF allows banks to borrow money from RBI through repurchase agreements.<\/li><li>LAF consists of repo and reverse repo operations.This arrangement allows banks to respond to liquidity pressures and is used by governments to assure basic stability in the financial markets.<\/li><\/ul>\n\n\n\n<p><strong>Repo rate:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Repo rate is also known as the benchmark interest rate and it is the rate at which the RBI lends money to the banks for a short term.&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>Reverse Repo rate:&nbsp;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Reverse repo rate is the short term borrowing rate at which RBI borrows money from banks.&nbsp;<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News:The Monetary Policy Committee of the Reserve Bank of India(RBI) has cut the key policy rate by 25 basis points to 5.15 %. Facts: Highlights of the Monetary policy: The Reserve Bank of India\u2019s(RBI) Monetary Policy Committee(MPC) has decided to reduce the policy repo rate under the liquidity adjustment facility(LAF) by 25 basis points to&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/fourth-bi-monthly-monetary-policy-review\/\">Continue reading <span class=\"screen-reader-text\">Fourth Bi-monthly monetary policy review<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[3875,394],"class_list":["post-86301","post","type-post","status-publish","format-standard","hentry","category-economy","tag-bimonthly-monetary-policy","tag-rbi","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704226099},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86301"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86301\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}