New Delhi: The six-member Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das decided by majority view in favour of the rate hike. The Consumer Price Index (CPI) based inflation, which RBI factors in while fixing its benchmark rate, stood at 6.7 per cent in October. Retail inflation has been ruling above the RBI's comfort level of 6 per cent since January this year.
Following are the highlights of RBI's monetary policy statement:
- Hikes benchmark lending rate by 35 basis points to 6.25 per cent
- Cuts growth projection for this fiscal to 6.8 pc from 7 pc estimated in September
- Inflation to come down below 6 pc in March quarter, to average 6.7 pc this fiscal
- Economy resilient; India to remain fastest-growing major economy
- Biggest risks to outlook from protracted geopolitical tensions are global slowdown and tightening of global financial conditions
- Battle against inflation yet not over as risks remain, RBI to keep 'Arjuna's eye' (keen focus) on evolving inflation dynamics
- Must deal with the current global hurricane with confidence and endurance
- Rupee should be allowed to find its level and that is what we have been striving to ensure
- Rupee movement remained least disruptive as compared to peers amid strengthening US dollar
- Current account deficit imminently manageable; forex reserve comfortable at USD 551.2 bn
- Liquidity in the banking system remains in surplus
- Rabi sowing so far is 6.8 per cent higher than the normal sown area
- Non-food credit rose to Rs 10.6 lakh crore during April-November from Rs 1.9 lakh crore a year ago
- UPI to soon allow customers to block funds in his/her account for specific purposes
