News:The Reserve Bank of India released its bi-monthly monetary policy committee(MPC) report.
Key Highlights from the report:
- Repo Rate:It is the rate at which the RBI lends money to the banks for a short term.It remains unchanged at 5.15%.
- Reverse Repo Rate:It is the short term borrowing rate at which RBI borrows money from banks.It also remained unchanged at 4.9%.
- Marginal Standing facility:It is a window for banks to borrow from the Reserve Bank of India in an emergency situation when interbank liquidity dries up completely.It has been kept at 5.4%.
- Growth:The GDP growth for the financial year 2020-21 is projected at 6%.
- Inflation:The estimation for the consumer price index-based inflation has been kept at 5.0-5.4% for the first half of 2020-21.
About Monetary Policy Committee(MPC):
- The Monetary Policy Committee(MPC) is a committee of the Reserve Bank of India.
- The MPC is made up of six members with three nominated by the Union government and three representing the RBI.
- The MPC is mandated by law to ensure that retail inflation stays within a band of two percentage points of the target inflation rate of 4%