RBI Credit Policy

07-02-2019

 

RBI  policy  highlights :

 

RBI cuts rates by 25 bps . RBI shifts stance to neutral from calibrated tightening. Future rate path will be data dependent and inflation reading.

 

Major highlights:

 

1) GDP growth for 2018-19 is expected to be 7.2% and 7.4% for 2019-20.

2) Inflation forecast cut by 50 bps. Q4 inflation is expected to be 2.8%. Inflation for H1 2019-20 is expected to be 3.2 to 3.4% and 3.9% for H2.

3) FPI limit of not more than 20% in a single corporate debt paper has been withdrawn.

4) Risk Weightage rating for NBFC lending will depend on rating.

5) Collateral for farm loans increased to 1.6 lacs.

6) Liquidity is in surplus last week.

7) Global economy seems to be slowing and inflation is edging lower in advanced economies.

8) Yields in EM markets softening.

 

USDINR is at 71.45 after hitting 71.75 earlier in the day. 10 Year yield is at 7.34. Nifty is now at 11050 (down 14 points).

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