By IANS,
Mumbai : Following are the highlights of the first quarterly update of India’s monetary policy for this fiscal, unveiled by Reserve Bank of India Governor D. Subbarao here Tuesday:
* Bank rate retained at 6 percent
* Repo rate unchanged at 4.75 percent
* Reverse repo rate unchanged at 3.25 percent
* Cash reserve ratio unchanged at 5 percent
* Statutory liquidity ratio unchanged at 24 percent
* Inflation forecast hiked to 5 percent from 4 percent
* Negative inflation only a statistical phenomenon
* Balance between liquidity and inflation main concern
* India’s growth now forecast at 6 percent with upward bias
* More scope for cutting rates by commercial banks
* Money supply may grow 18 percent this fiscal
* Policy will ensure enough commercial credit