RBI's Third Bi monthly monetary policy review 2018-19

August 1, 2018

On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.5 per cent. Consequently, the reverse repo rate under the LAF stands adjusted to 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75 per cent.

The Road to Budget Transparency

Budget transparency — the public availability of comprehensive and timely information about public finances — is a key precondition for promoting an informed public dialogue around policy priorities, and for ensuring government accountability. Providing public access to sufficient budget information enables citizens and civil society groups to understand how governments collect and spend revenues and to engage in monitoring and advocacy that can affect decision making regarding public budget policies.

Digital Finance for All: Powering Inclusive Growth in Emerging Economies

In this report, McK takes a comprehensive approach to quantifying the economic and social impact of digital finance in emerging economies. McKinsey’s proprietary general equilibrium macroeconomic model and detailed inputs from field research in seven emerging economies that cover a range of geographies and income levels: Brazil, China, Ethiopia, India, Mexico, Nigeria, and Pakistan. We find that widespread adoption and use of digital finance could increase the GDP of all emerging economies by 6 percent, or $3.7 trillion, by 2025.

Promoting Green Local Currency Bonds for Infrastructure Development

Financing infrastructure projects with green local currency-denominated bonds is highly desirable for the following two reasons. First, financing infrastructure projects with long-term local currency bonds instead of short-term bank loans denominated in foreign currency would make the projects less vulnerable to currency and refinancing risks, especially as they generate revenue in the local currency.

Capital Flow Measures - Structural or Cyclical Policy Tools?

This paper analyzes the use of capital flow measures in emerging markets. Drawing on a specially compiled new database of capital flow measures, it establishes that policy makers in emerging market economies do not use capital flow measures as an active tool at business cycle frequency. While there is a general trend toward the liberalization of capital accounts, the use of capital flow measures as a