MONETARY POLICY JUNE 2026: IMPLICATIONS FOR INDIA'S EXTERNAL SECTOR.
MONETARY POLICY JUNE 2026: Monetary policy Committee (MPC) meeting held from June 3rd to June 5 2026 unanimously decided to retain policy rates and the repo rate unchanged at 5.25 % and continue a neutral policy stance. Accordingly Cash Reserve ratio ( CRR) remained at 3%,SDF rate at 5.00%,MSF rate at 5.50 % ,and bank rate at 5.50%.This decision was taken due to factors like heightened globail uncertainties, particularly the ongoing and uncertain conflict in West Asia which in turn elevated energy prices and inflicted supply chain disruptions. In the existing scenario RBI lowered its GDP growth projections for Fy 2026-27 to 6.6 % from earlier 6.9 % level.Quarterly projections of GDP indicated that during Q1 fall in growth projections would be from 6.8 % to 6.6%, in Q2 from 6.7% to 6.3%, in Q3 from 7% to 6.5% and in Q4 from 7.2 % to 6.8 %.It may be noted here that the Provisional GDP estimates released by the Ministry of Statistics an...