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.