RBI cut repo rate by 25 bps; here are the highlights of monetary policy statement

New Delhi: Following are the highlights of RBI's first bi-monthly monetary policy statement, 2016-17:* Repo rate cut by 0.25% to 6.50%* Reverse repo hiked by 0.25% to 6%[caption id="attachment_2615994" align="alignleft" width="380"] RBI governor Raghuram Rajan.[/caption]* Cash reserve ratio or CRR unchanged at 4%* Minimum daily cash maintenance by banks with RBI cut by 5%* MSF rate cut by 0.75% to lower banks' borrowing cost* Policy to remain accommodative going forward* Pegs 2016-17 growth forecast at 7.6%* Expects inflation at around 5%* Cut in small savings rate, MCLR introduction to improvemonetary policy transmission* Government adhering to fiscal consolidation path will helplower inflation* 7th Pay Commission award to put upward pressure of up to1.5% on inflation* Proposes custodian banks; banks focusing on wholesale andlong term financing* Second bi-monthly monetary policy on June 7.PTI