Following are the highlights of RBI’s fifth bi-monthly monetary policy statement, 2016-17:

1. The RBI keeps repo rate unchanged at 6.25%, reverse repo at 5.75%.
2. The RBI leaves cash reserve ratio (CRR) unchanged at 4% but said it will withdraw the temporary 100% hike in the CRR announced late last month in the fortnight beginning 10 December.
3. The RBI cuts growth forecast to 7.1%, from 7.6% for this fiscal.
4. The RBI keeps the inflation target at 5% for March 2017, with upside risk.
5. The RBI said demonetisation will lower the prices of perishables, could reduce inflation by 10-15 basis points by December.
6. All the six members of the RBI panel voted to hold rates. Inflation could slow by 10-15 basis points in October-December due to the cash clampdown.
7. The RBI’s monetary policy statement said demonetisation will result in short-run disruptions in cash-intensive sectors.
8. RBI says crude price volatility, surge in financial market turbulence could put March-end inflation target at risk.
9. Foreign exchange reserve rose to all-time high of $364 billion on 2 December.
10.The RBI’s next monetary policy statement is on 8 February