Tuesday, January 24, 2012

RBI Monetary Policy of third Qtr

The followings are the highlights of the third-quarter review of the 
Monetary Policy announced by Reserve Bank of India Governor D Subbarao: 
* Cash reserve ratio lowered by 0.50 pc to 5.5 pc
* Short term lending rate (repo) retained at 8.5 pc
* Short-term borrowing rate unchanged at 7.5 pc
* CRR cut to infuse additional Rs 32,000 crore liquidity
* GDP growth estimate for 2011-12 cut to 7 pc from 7.6 pc
* Downside risks to growth have increased
* March-end inflation projection at 7 pc
* Upside risks to inflation remains
* Bank rate retained at 6 per cent
* Fiscal slippages threat to economic stability
* Investment, capital inflows have slowed down
* Fiscal deficit to overshoot Budget estimate
* Injected Rs 70,000 cr in November-January through OMOs
* Next review of monetary policy on March 15.

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