New Delhi: Following are the highlights of RBI's first bi-monthly monetary policy statement, 2016-17:
* Repo rate cut by 0.25% to 6.50%
* Reverse repo hiked by 0.25% to 6%
* Cash reserve ratio or CRR unchanged at 4%
* Minimum daily cash maintenance by banks with RBI cut by 5%
* MSF rate cut by 0.75% to lower banks' borrowing cost
* Policy to remain accommodative going forward
* Pegs 2016-17 growth forecast at 7.6%
* Expects inflation at around 5%
* Cut in small savings rate, MCLR introduction to improve monetary policy transmission
* Government adhering to fiscal consolidation path will help lower inflation
* 7th Pay Commission award to put upward pressure of up to 1.5% on inflation
* Proposes custodian banks; banks focusing on wholesale and long term financing
* Second bi-monthly monetary policy on June 7.
