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Highlights of Reserve Bank’s review of monetary policy

By IANS

Mumbai : Following are the highlights of the review of India's monetary and credit policy for the current fiscal conducted by the country's central bank here Tuesday:

– Bank rate kept unchanged

– Reverse-repurchase rate and repurchase rate kept unchanged

– Cash reserve ratio increased by 50 basis points to 7 percent

– Economic growth projection for 2007-08 retained at 8.5 percent

– Stated priority of containing inflation below 5 percent

– Upward pressures on inflation persist

– Inflation rate declines from 5.9 percent in March to 4.4 percent

– Money supply growth, at 21.6 percent, much higher than projection

– Aggregate deposits of banks grows 24.4 percent

– Non-food credit growth slows to 24.4 percent

– India's foreign exchange reserves at $222 billion as on July 20

– Rupee appreciates 6.63 percent against dollar this year

– Average price for crude up from $56.2 per barrel in January to $73.5 now

– Monetary policy will continue to be vigilant and proactive

– Midterm review of the monetary policy on Oct 30

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