Highlights of monetary policy review by RBI
Following are the highlights of the quarterly monetary policy review conducted by the RBI in Mumbai in which some key rates were left unchanged and the country's growth targeted was lowered for this fiscal:business Updated: Jan 27, 2009 12:55 IST
Following are the highlights of the quarterly monetary policy review conducted by the Reserve Bank of India (RBI) in Mumbai on Friday in which some key rates were left unchanged and the country's growth targeted was lowered for this fiscal:
- Bank rate kept unchanged at 6 per cent.
- Repo rate has been kept unchanged at 5.5 per cent.
- Reverse repo rate kept unchanged at 4 per cent.
- Cash reserve ratio (CRR) kept unchanged at 5 per cent.
- Statutory liquidity ratio (SLR) kept unchanged at 24 per cent.
- Gross domestic product (GDP) growth target for 2008-09 lowered to 7 per cent.
- Inflation to be in the range of 4-4.5 per cent.
- Inflation to fall below 3 per cent by March.
- Central bank interventions since September resulted in more liquidity of Rs.3.88 trillion (Rs.388,000 crore).
- Permanent cut in SLR has added Rs.400 billion (Rs.40, 000 crore) to liquidity.
- Capital expenditure plans slowing down, but ongoing projects to continue.
- Fiscal deficit target revised to 5.9 per cent of GDP from 2.5 per cent.
- Excise, customs duty cuts may lower government revenues by 0.6 per cent of GDP.
- Consolidated fiscal deficit of states is expected to rise to 2.6 per cent of GDP.