Home / Knowledge / News / Textiles / Bi-monthly monetary policy: RBI keeps rates unchanged
Bi-monthly monetary policy: RBI keeps rates unchanged
09
Aug '16
In its third bi-monthly monetary policy statement for the year 2016-17, the Reserve Bank of India (RBI) has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent.

The central bank has also kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL).

“It has been decided to continue to provide liquidity as required but progressively lower the average ex ante liquidity deficit in the system from one per cent of NDTL to a position closer to neutrality,” an RBI statement said.

Consequently, the reverse repo rate under the LAF will remain unchanged at 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 7.0 per cent.

“We have kept rates on hold, maintaining an accommodative stance while we await developments. We are within the inflation band given to us by the government and expect to be around 5 per cent CPI inflation by March 2017, absent unforeseen eventualities,” said RBI governor Raghuram Rajan in post-policy press conference.

The governor said the rationale behind the current policy stance is the projected trajectory of inflation over the rest of the year due to increase in food prices, pulses and cereals. 

Tirupur Exporters' Association (TEA) president A Sakthivel welcomed RBI's full preparedness to meet out the eventuality in case, any disturbance happens in the foreign currency market after redemption of Foreign Currency Non Resident ((FCNR)(Bank)), about $26 billion in September 2016 and also appreciated maintaining of the foreign exchange resource at $365.7 billion by July 5, 2016.

Citing Rajan's statement, Sakthivel said that despite easy liquidity, banks have passed past rate cuts into lending rate only modestly and appealed to the banks to reduce the lending rates and help the SME exporting units to stay competitive and also attract them to make investments in the new projects and avail the 25 per cent capital subsidy benefit given under ATUFS, announced recently in Special Package for garment sector. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

'Sportswear is much more mainstream than earlier'

Fashion | On 20th Jul 2018

'Sportswear is much more mainstream than earlier'

The business of sportswear has evolved at a fast pace over the years. ...

Courtesy: YKK

Textiles | On 20th Jul 2018

Japanese firm YKK explores opening office in Uzbekistan

Japanese company YKK recently discussed with the Uztuqimachiliksanoat ...

HFPA alerts member firms on latest US tariff announcement

Textiles | On 20th Jul 2018

HFPA alerts member firms on latest US tariff announcement

The US Home Fashion Products Association (HFPA) has alerted its...

Interviews View All

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search