{"id":1883,"date":"2019-08-07T09:58:48","date_gmt":"2019-08-07T09:58:48","guid":{"rendered":"https:\/\/www.ixambee.com\/blog\/?p=1883"},"modified":"2023-02-27T11:16:35","modified_gmt":"2023-02-27T05:46:35","slug":"important-banking-awareness-topic-latest-rbi-third-bi-monetary-policy-meeting","status":"publish","type":"post","link":"https:\/\/blog.ixambee.com\/important-banking-awareness-topic-latest-rbi-third-bi-monetary-policy-meeting","title":{"rendered":"Important Banking Awareness Topic: Latest RBI Third BI-Monetary Policy Meeting"},"content":{"rendered":"

RBI had held the third Bi-Monetary Policy Meeting from August 5-7, 2019<\/strong>. We are here with the Highlights of third Bi-monetary Policy Meeting. It is important to know that the Banking\/General awareness section plays a vital role in increasing your overall score while attempting the RBI Grade B exam. At least 2-3 questions can be expected from the RBI Monetary policy in RBI Grade B 2019 exam. Being updated with RBI Monetary Policy will not only help you in RBI Grade B 2019 exam but also in other exams such as NABARD, SEBI, SBI PO, IBPS PO and many more. <\/span><\/p>\n

Lets us understand RBI <\/strong>third Bi-Monetary Policy <\/strong>in detail:<\/span><\/h2>\n

Highlights of 3<\/b>rd<\/b> Bi-monetary Policy Meeting, 2019-20<\/b><\/p>\n

The 3rd MPC meeting for FY19-20 was held on Aug 5-7, 2019. It was the 18<\/span>th<\/span> meeting of the MPC overall, since its constitution.<\/span><\/p>\n

In its 3rd<\/span> MPC meeting, RBI <\/span>cut the policy rates for the 4th consecutive time through a unanimous decision<\/b>. The rate has been <\/span>cut by 35 bps<\/b> while maintaining the \u2018accommodative\u2019 stance. <\/span>RBI highlighted that the transmission of rate cuts has improved.<\/b><\/p>\n

The <\/span>key outcomes<\/b> of the MPCs for this year are summarized in the table below:<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
MPC meeting FY19-20<\/b><\/td>\n1st (April 2 \u2013 4, 2019)<\/b><\/td>\n2nd (June 4 \u2013 6, 2019)<\/b><\/td>\n3rd (Aug 5 \u2013 7, 2019)<\/b><\/td>\n<\/tr>\n
Resolution<\/span><\/i><\/td>\nreduce the policy repo rate by 25 bps<\/span><\/i><\/td>\nreduce the policy repo rate by 25 bps<\/i><\/b><\/td>\nreduce the policy repo rate by 35 bps<\/i><\/b><\/td>\n<\/tr>\n
    – Repo Rate<\/span><\/td>\n6%<\/span><\/td>\n5.75%<\/span><\/td>\n5.40%<\/span><\/td>\n<\/tr>\n
    – Reverse Repo Rate<\/span><\/td>\n5.75%<\/span><\/td>\n5.50%<\/span><\/td>\n5.15%<\/span><\/td>\n<\/tr>\n
    – MSF & Bank rate<\/span><\/td>\n6.25%<\/span><\/td>\n6.00%<\/span><\/td>\n5.65%<\/span><\/td>\n<\/tr>\n
    – Stance<\/span><\/td>\nNeutral<\/span><\/td>\nAccommodative<\/b><\/td>\nAccommodative<\/span><\/td>\n<\/tr>\n
Members Vote*<\/span><\/i><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    – Chairman<\/span><\/td>\nShaktikanta Das \u2013 Yes<\/span><\/td>\nShaktikanta Das \u2013 Yes<\/span><\/td>\nShaktikanta Das \u2013 Yes (for 35 bps)<\/span><\/td>\n<\/tr>\n
    – In-charge of MP<\/span><\/td>\nDr. Viral V. Acharya \u2013 No<\/span><\/td>\nDr. Viral V. Acharya \u2013 Yes<\/span><\/td>\nB P Kanungo \u2013 Yes (for 35 bps)<\/span><\/td>\n<\/tr>\n
    – Member<\/span><\/td>\nDr. Chetan Ghate \u2013 No<\/span><\/td>\nDr. Chetan Ghate \u2013 Yes<\/span><\/td>\nDr. Chetan Ghate \u2013 Yes (for 25 bps)<\/span><\/td>\n<\/tr>\n
    – Member<\/span><\/td>\nDr. Pami Dua \u2013 Yes<\/span><\/td>\nDr. Pami Dua \u2013 Yes<\/span><\/td>\nDr. Pami Dua \u2013 Yes (for 25 bps)<\/span><\/td>\n<\/tr>\n
    – Member<\/span><\/td>\nDr. Ravindra H. Dholakia – Yes<\/span><\/td>\nDr. Ravindra H. Dholakia – Yes<\/span><\/td>\nDr. Ravindra H. Dholakia – Yes (for 35 bps)<\/span><\/td>\n<\/tr>\n
    – Member<\/span><\/td>\nDr. Michael Debabrata Patra – Yes<\/span><\/td>\nDr. Michael Debabrata Patra – Yes<\/span><\/td>\nDr. Michael Debabrata Patra – Yes (for 35 bps)<\/span><\/td>\n<\/tr>\n
CPI Inflation outlook <\/span><\/i><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    Q4 2018-19<\/span><\/td>\n2.4%<\/span><\/td>\n2.5%<\/span><\/td>\n<\/td>\n<\/tr>\n
    Q1 2019-20<\/span><\/td>\n<\/td>\n<\/td>\n3.1%<\/span><\/td>\n<\/tr>\n
    H1 2019-20<\/span><\/td>\n2.9 \u2013 3.0%<\/span><\/td>\n3.0 \u2013 3.1%<\/span><\/td>\n3.1 (for Q2FY20)<\/span><\/td>\n<\/tr>\n
    H2 2019-20<\/span><\/td>\n3.5 \u2013 3.8%<\/span><\/td>\n3.4 \u2013 3.7%<\/span><\/td>\n3.5 \u2013 3.7%<\/span><\/td>\n<\/tr>\n
    Q1 2020-21<\/span><\/td>\n<\/td>\n<\/td>\n3.6%<\/span><\/td>\n<\/tr>\n
GDP growth outlook <\/span><\/i><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    2019-20 overall<\/span><\/td>\n7.2%<\/span><\/td>\n7.0% (revised down)<\/b><\/td>\n6.9% (revised down)<\/b><\/td>\n<\/tr>\n
    H1 2019-20<\/span><\/td>\n6.8 \u2013 7.1%<\/span><\/td>\n6.4 \u2013 6.7%<\/span><\/td>\n5.8 \u2013 6.6%<\/span><\/td>\n<\/tr>\n
    H2 2019-20<\/span><\/td>\n\n
    \n
  1. \n
      \n
    1. \u2013 7.4%<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<\/td>\n
\n
    \n
  1. \n
      \n
    1. \u2013 7.5%<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<\/td>\n
\n
    \n
  • \u2013 7.5%<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
    Q1 2020-21<\/span><\/td>\n<\/td>\n<\/td>\n7.4%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

1<\/span><\/i>st<\/span><\/i> bi-monthly meet<\/span><\/i> – Dr. Ravindra H. Dholakia voted to change the stance from neutral to accommodative while other 5 members voted in favour of the decision to maintain the neutral stance of monetary policy.<\/span><\/i><\/p>\n

2<\/span><\/i>nd<\/span><\/i> bi-monthly meet<\/span><\/i> \u2013 unanimous decision to change stance.<\/span><\/i><\/p>\n

3<\/span><\/i>rd<\/span><\/i> bi-monthly meet<\/span><\/i> \u2013 unanimous decision to maintain accommodative stance.<\/span><\/i><\/p>\n

The main considerations underlying the decision for 3<\/b>rd<\/b> MPC<\/b><\/p>\n