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The RBI released its fifth bi-monthly monetary policy statement for the year 2019-20

The RBI released its fifth bi-monthly monetary policy statement for the year 2019-20

The Reserve Bank of India released its fifth bi-monthly monetary policy statement for the financial year 2019-20 where the Monetary Policy Committee (MPC) which was led by the Governor Shaktikanta Das, decided to keep the policy of repo rate unchanged at 5.15 per cent.

Key Points:

  • In 2019, the Reserve Bank of India (RBI) has cut the repo rate by 135 basis points so far to a nine-year low of 5.15%. 
  • The RBI states that it is against any kind of private digital currency as the currency is a sovereign function. The apex bank has however started initial discussions to launch its own digital currency.
  • It should also be noted that RBI is currently following target inflation at 4% with a band of ±2 per cent.
  • Among the other emerging markets, the growth of China has decelerated in the Q3, and its exports have significantly declined mainly due to trade tensions with the US. The GDP growth of Russia and Brazil in the Q3 has accelerated. It was mainly due to agricultural output and industrial activities.

About RBI:

  • The RBI was established on April 1, 1935, under the provisions of the Reserve Bank of India Act, 1934.
  • In the initial, the Central Office of the RBI was established in Calcutta later permanently moved to Mumbai in the year 1937.
  • Functions of RBI:

1. Monetary Authority

2. Regulator and Supervisor of the Financial System

3. Manager of Foreign Exchange

4. The issuer of Currency

5. Developmental Role

6. Financial Inclusion

RBI’s Important Publication (half-yearly):

1. Financial Stability Report

2.Monetary Policy Report

3. Report on Financial Review

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