What the RBI monetary policy has to offer

The Reserve Bank of India on Tuesday kept the key rates unchanged at 6.50 per cent.

Here are the highlights:

• Repo rate unchanged at 6.50 per cent, Reverse Repo at 6%
• Cash reserve ratio or CRR unchanged at 4%
• Monetary policy to remain accommodative
• Pegs growth forecast at 7.6% for the current fiscal
• Inflation target kept unchanged at 5% for January 2017 with upward bias
• Impact of firming crude oil prices, implementation of 7th Pay Commission recommendations need to be watched
• Interest rate transmission critical for growth revival
• Timely capital infusion in PSU banks to aid credit flow
• Public investment gaining strength, continuing weakness in private investment is a concern.
• To shortly review the implementation of the Marginal Cost Lending Rate framework by banks
• Third bi-monthly monetary policy on August 9.