Government retains GDP growth rate
India
to grow at 7.4% in 2018-19
LAF
unchanged at 6.5 per cent
Finance
Ministry Statement on Fifth Bi-monthly Monetary Policy Statement, 2018-19
Resolution of the Monetary Policy Committee, Reserve Bank of India issued, on
the basis of its assessment of the current and evolving macroeconomic
situation, decided to keep the Policy Repo Rate under the Liquidity Adjustment
Facility (LAF) unchanged at 6.5 per cent. The MPC has, however, retained its
stance of ‘calibrated tightening’.
The
GDP growth projection for 2018-19 is retained at 7.4 per cent as in the Fourth
Bi-monthly Resolution in October, 2018. The projections of inflation for
2018-19 and Q1:2019-20 have been substantially revised downwards from the
October resolution.
The
Secretary, Department of Economic Affairs, Shri Subhash Chandra Garg in a
Statement said that the assessment of the MPC for growth and inflation outlook
is consistent with the Government’s assessment of inflation and growth.
Shri
Garg said that the Government welcomes the assessment of the MPC. The
Government notes its decision to maintain the Policy Rate. The policy stance
probably required calibration, he added. The
RBI has also decided to reduce SLR from existing 19.5% to 18.0% in six
quarterly instalments beginning January 2019.
Secretary, DEA, Shri Garg said
that this will have some implications for the Government securities. However,
the momentum created by the reduction in oil prices and reversal of foreign
flows has resulted in further moderation of yields post policy announcement, he
concluded.
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