RBI cuts SLR, lowers Inflation target to 4 %

Mumbai, June 7: A high-level meeting which affects Indian business has taken place today. The Monterey Policy Committee (MPC) headed by RBI Governor Urjit Patel has decided today to keep the repo rate unchanged at 6.25 percent.

* The committee has cut the Statutory Liquidity Ratio (SLR) by 50 basis points to 20 percent.

* Reserve Bank of India has lowered the forecast for Inflation at 4 %.

* The Central head bank has maintained Status quo on Cash Reserve Ratio at 4 %.

The above statements were announced by RBI during its second bi-monthly monetary policy statement for 2017- 18 after meeting for two days.

Bank experts say the Intrest on bank rates wouldn't come down because banks have no room further to cut down the rates because the central bank didn't cut repo rate RR.

Industry experts have said that the RBI has decided such a pragmatic move because of Upcoming Monsoons and roll out of GST from July 1.Governor Patel hasn't responded to questions relating to demonetization.

Finally, let's hope that RBI cuts rates in its next policy review.