By IANS,
Mumbai : Following are the highlights of India’s monetary policy review conducted by Reserve Bank Governor Y.V. Reddy Tuesday, against the backdrop of inflation rate ruling at a 13-year high and signs of a slowdown in economic growth:
– Bank Rate kept unchanged
– Reverse repurchase rate unchanged
– Repurchase rate increased by 50 basis points to 9 percent
– Cash reserve ratio to be increased by 25 basis points to 9 percent
– Country’s economic growth projection lowered to around 8 percent
– Target to bring inflation down to below 7 percent by March 2009
– Medium-term target for inflation set at 3 percent
– Focus on price stability and orderly conditions for financial markets
– Focus also on continuation of the growth momentum
– Real economic growth now revised to 9 percent for 2007-08
– Wholesale price inflation ruling at 11.89 percent as on July 12
– Crude oil prices for India ruling at $121.9 per barrel
– Money supply increased by 20.5 percent as on July 4
– Deposits for commercial banks grew by 21.7 percent as on July 4
– Non-food credit rose by 25.9 percent
– Oil bonds worth $4.3 billion issued to state-run oil retailers
– Major downtrend witnessed in primary and secondary equity markets
– Exports up 21.7 percent during the first two months of this fiscal
– Oil imports up 48.6 percent on account of the surge in crude oil prices
– Foreign exchange reserves declined marginally to $307.1 billion
– Rupee depreciated by 5.4 percent against dollar this fiscal
– Inflation now a global phenomenon, with serious concerns for India
– Downside risks to global economic prospects appear to have intensified
– Mid-term Review of monetary policy on Oct 24