Highlights of the RBI Monetary Policy (August 2019)
Source: Highlights of the RBI Monetary Policy (August 2019) RBI cuts rates by 35 basis points, basis the assessment of the current and evolving macro-economic situation. The Monetary Policy Committee (MPC) is also maintaining an accommodative stance of the monetary policy. RBI cuts rates by 35 bps from 5.75 per cent to 5.40 per cent. It is the fourth rate cut in a row. The decision is in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. Economic activity remained weak in major emerging market economies (EMEs), pulled down mainly by slowing external demand. Crude oil prices fell sharply in mid-May on excess supply from an increase in non-OPEC production, combined with a further weakening of demand. The rate cut has sent a strong signal to domestic banks to cut lending rates before September. GDP projection lowered to 6.9% from earlier 7.0% fo...