RBI mid-quarter policy review: Highlights
RBI mid-quarter policy review: Highlights
Updated on Friday, September 16, 2011, 14:29

Mumbai: The following are the highlights of the mid-quarterly review of the Monetary Policy announced by Reserve Bank of India (RBI) Governor D Subbarao:

* Short term lending rate (repo) hiked by 25 basis points (bps) to 8.25 percent.

* Short-term borrowing rate (reverse repo) up 25 bps to 7.25 percent.

* Cash Reserve Ratio (CRR) and bank rate left unchanged at 6 percent each.

* Downside risk to 8 percent growth projection for the financial year 2011-12.

* Inflation, which is a key risk, will guide future policy actions.

* Inflationary pressures expected to ease towards later half of 2011-12.

* Petrol price hike to push WPI by 7 bps, besides having an indirect impact on inflation.

* Developments in the global economy matter of serious concern.

* Exports growth unlikely to be sustained in the face of weakening global demand.

* Banks on an average raised base rates to 10.75 percent in August from 10.25 percent in July.

* Banks` overnight borrowing window under Marginal Standing Facility at 9.25 per cent rate.

* Second quarterly review of monetary policy on October 25.

PTI

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