By IANS,
Mumbai : Following are the highlights of the mid-term review of India’s monetary policy conducted by Reserve Bank of India (RBI) Governor D. Subbarao Friday:
– Bank rate, repo rate and reverse repo rate kept unchanged
– Flexibility retained to conduct overnight auctions of securities
– Cash reserve ratio kept unchanged at 6.5 per cent
– Floating rate bonds to be issued at appropriate time
– Interest rate futures contracts to be launched in early 2009
– Domestic oil, shipping firms permitted to hedge foreign exchange risk overseas
– Economic growth forecast for 2008-09 revised to 7.5-8 percent
– Inflation rate projection retained at 7 percent by end-March 2009
– Commitment to bring down inflation to 5 percent at the earliest
– Commitment to moderate the rate of money supply to 17 percent
– Guidelines by November to rehabilitate potentially viable but sick small units
– A model scheme for financial literacy and credit counselling centres to be notified
– Signs of deterioration in the fiscal situation adding to demand pressures