RBI Q3 Monetary Policy Review: Key Highlights
ollowing are the highlights of RBI's third quarter review of monetary policy:
Mumbai: Following are the highlights of RBI's third quarter review of monetary policy:
* Key lending rates hiked by 0.25 percent to 8 percent
* Cash reserve ratio kept unchanged at 4 percent
* Marginal Standing Facility (MSF) rate stands at 9 percent
* GDP growth to be less than 5 percent in current fiscal
* Growth to improve to 5.5 percent in 2014-15
* Current Account Deficit to be below 2.5 percent this fiscal
* March-end inflation could exceed 8 percent
* Rate hike will set economy securely on disinflationary path
* Growth likely to lose momentum in Q3 of 2013-14.
* Slowdown in economy getting increasingly worrisome
* Inflation is a tax that is grossly inequitable, falling hardest on the very poor
* Fiscal and monetary authorities should continue to work for macroeconomic stabilisation
* Henceforth, policy review to take place every two months. Next review on April 1.