RBI out with their latest policy decision 9 Aug 2016
- reverse repo rate stays at 6.00%
- cash reserve ratio 4.0% unchanged
- says mon pol remains accommodative
- emphasises adequate provision of liquidity
- will conduct open market purchase of govt bonds via auction on 11 Aug
- upside risks to 5% inflation target for March 2017
- RBI is awaiting space for policy action
Rates left on hold as expected.
Outgoing gov Rajan says hopefully the next mon pol will come from the proposed new MPC.
- may see more possibility of rate transmission as economy recovers
