Check Credit Score
Check Credit Score
HomeNewsIndia

FinMin says RBI's assessment of economy in line with govt's reading

The MPC retained its GDP growth projection of the current fiscal at 7.4 percent and expects inflation to remain well below the mid-term target of 4 percent.

December 05, 2018 / 10:23 PM IST
Eleven weak public sector banks were put under RBI's prompt corrective action that restricted then from expanding unless they cleaned up their balance sheets. However, the government, which had earlier supported the framework, changed its views and called for relaxation.  (Image: Reuters)

Eleven weak public sector banks were put under RBI's prompt corrective action that restricted then from expanding unless they cleaned up their balance sheets. However, the government, which had earlier supported the framework, changed its views and called for relaxation. (Image: Reuters)

The finance ministry said the assessment of growth and inflation made by the RBI's Monetary Policy Committee (MPC) is line with government's reading.

RBI Governor Urjit Patel-headed MPC has kept the key lending rate unchanged. The panel retained its GDP growth projection of the current fiscal at 7.4 percent and expects inflation to remain well below the mid-term target of 4 percent.

"The assessment of the MPC for growth and inflation outlook is consistent with the government's assessment of inflation and growth," said Subhash Chandra Garg, Secretary, Economic Affairs, in a statement.

The government, he said, welcomes the assessment made by the MPC.

The RBI has also decided to reduce Statutory Liquidity Ratio or portion of funds banks have to mandatorily park in government securities from existing 19.5 percent to 18 percent in six quarterly instalments beginning January 2019.

"This will have some implications for the government securities. However, the momentum created by the reduction in oil prices and reversal of foreign flows has resulted in further moderation of yields post policy announcement," Garg said.

Next meeting of the six-member MPC will take place for three days from February 5, 2019.

PTI
first published: Dec 5, 2018 10:09 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347