RBI's first bi-monthly monetary policy statement: Highlights

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.