By IANS,
Mumbai : Following are the highlights of the annual policy statement for fiscal 2010-11 presented by Reserve Bank of India Governor D. Subbarao before chief executives of commercial banks here Tuesday:
– Cash reserve ratio hiked by 25 basis points to 6.0 percent and to take effect from April 24
– Move to suck out excess liquidity worth Rs.12,500 crore from system
– Bank rate retained at 6.0 percent
– Repo rate hiked by 25 basis points to 5.25 percent
– Reverse repo rate increased by 25 basis points to 3.75 percent
– India’s economic growth projected at 8 percent with upward bias for current fiscal
– Annual inflation rate projection at 5.5 percent
– Real economic growth for 2009-10 may have settled at 7.2-7.5 percent
– Inflationary pressures have accentuated in the recent period
– Inflation risk looms large due to domestic demand and price rise in global commodities
– Reserve Bank to ensure price stability and anchor inflation expectations
– Money supply to grow at 17 percent in 2010-11
– Deposits of commercial banks to grow by 18 percent
– First quarter review of monetary policy for 2010-11 will be announced on July 27