Snippets from RBI monetary policy

The following are the highlights of the fourth bi-monthly monetary statement for 2018-19:

 

* RBI keeps key lending rate (repo) unchanged at 6.5 pc

* Reverse repo rate stands at 6.25 pc, bank rate at 6.75 pc, CRR at 4 pc

* Projects retail inflation to rise to 3.8-4.5 pc in October-March

* Retains GDP growth estimate at 7.4 pc for current fiscal

* Global economic activity becoming uneven, outlook clouded by uncertainties

* Excise cut in petrol and diesel will moderate retail inflation

* Rise in oil prices may have a bearing on disposable incomes, dent profit margins of corporates

* Oil prices remain vulnerable to further upside pressures

* Global, domestic financial conditions tightened, may dampen investment

activity

* Exports outlook uncertain

* Fiscal slippage at the centre/state to have a bearing on the inflation outlook,

besides heightening market volatility and crowding out private investment

* Inflation outlook needs a close vigil over the next few months, several upside risks persist

* Trade tensions, volatile and rising oil prices, and tightening global financial

conditions pose substantial risks to growth, inflation outlook

* Calls for the further strengthening of domestic macroeconomic fundamentals

* Next meeting of the MPC on December 3-5.

(With inputs from agencies.)