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

Courtesy: Hela Clothing

Apparel/Garments | On 18th Jun 2018

Hela's latest label revolves around underwear, sleepwear

The latest collection of Sri Lanka’s Hela Clothing is revolves mostly ...

Digital textile printing sector to grow by 20% by 2020

Textiles | On 18th Jun 2018

Digital textile printing sector to grow by 20% by 2020

The digital textile printing sector is expected to have a compound...

Kenya levies higher duties on mitumba import

Apparel/Garments | On 18th Jun 2018

Kenya levies higher duties on mitumba import

Kenya’s treasury secretary Henry Rotich recently raised the duty on...

Interviews View All

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kevin Nelson
TissueGen

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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


June 2018

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

news category


Related Categories:

Advanced Search