RBi pushes for reinvigorating private investments, clearing infra bottlenecks and providing big thrust to Pradhan Mantri Awas Yojana.

Following are the highlights of the third bi-monthly Monetary Policy Statement issued by the Reserve Bank of India:

• Key policy rate reduced by 0.25 per cent to 6%.

• Reverse repo rate cut by 0.25% to 5.75 per cent.

• Focus on keeping headline inflation close to 4 per cent on durable basis.

• Some risks to inflation have reduced or not materialised.

• Growth forecast unchanged at 7.3 pc for the current fiscal.

• Pushes for reinvigorating private investments, clearing infra bottlenecks and providing big thrust to Pradhan Mantri Awas Yojana.

• Forex reserves at $392.9 billion as on July 28.

• Four members of Monetary Policy Committee voted in favour of 0.25 pc rate cut.

• Farm loan waivers by states may result in fiscal slippages, undermine public spending quality.

• Government, RBI working to resolve large NPAs and recapitalise public sector banks.

• High levels of stress in twin balance sheets - banks and corporations – are likely to deter new investment.

• Next MPC meeting on October 3 and 4, 2017.

Photograph: PTI Photo