RBI Policy Review Highlights: Repo Rate Hiked By 25 Basis Points, First In Over 4 Years

KEY TAKEAWAYS FROM RBI MPC (Monetary Policy Committee)POLICY
— The Reserve Bank of India hikes key lending rate or repo rate by 25bps to 6.25%
— Reverse repo rate now stands at 6%; FY19 growth projection retained at 7.4 %
— The central bank projects retail inflation at 4.8-4.9% for April-September, 4.7% in H2 FY18

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It sees major upside risk to the inflation path as crude prices rose 12%
— Says volatile crude oil prices adds uncertainty to its inflation outlook
— RBI expects boost to investments from swift resolution under the Insolvency & Bankruptcy Code
— Geo-political risks, financial market volatility, trade protectionism to impact domestic growth
— Adherence to budgetary targets by the Centre and states will ease upside risks to the inflation outlook
— All members of the monetary policy committee voted for a 0.25% rate hike
— Next meeting of the Monetary Policy Committee on July 31 and August 1
The policy key rates revised at present are at as under this table