Sensex, Nifty rangebound; RBI holds repo rate but cuts SLR by 50 bps

Five members of Monetary Policy Committee were in favour of the monetary policy decision, while Dr Ravindra H Dholakia was not in favour.

The minutes of the MPC’s meeting will be published by June 21, 2017 while the next meeting of the MPC is scheduled on August 1 and 2, 2017.

Stressed assets: Reserve Bank said it would continue to work in partnership with the government to address the stress in banks’ balance sheets.

Better alignment of administered interest rates on small savings with market rates and stepped-up recapitalisation of banks to facilitate adequate flow of credit to productive sectors are important steps to follow through, it added.

Economic growth: With the CSO’s provisional estimates for 2016-17, the projection of real GVA growth for 2017-18 has accordingly been revised 10 bps downwards from the April 2017 projection to 7.3 percent, with risks evenly balanced, RBI said.