By IANS,
Mumbai : Following are the highlights of the mid-quarter review of the monetary policy by the Reserve Bank of India Thursday:
— Repo rate hiked by 50 basis points to 7.5 percent
— Reverse repo automatically revised upwards to 6.5 percent
— Marginal standing facility rate increased to 8.5 percent
— No change in other statutory rates
— Deceleration in some interest-sensitive sectors such as automobiles, no evidence of any sharp or broad-based slowdown
— Baseline projection for GDP growth for 2011-12 maintained at around 8 percent
— Domestic inflation remains high and much above the comfort zone of the Reserve Bank
— Non-food manufactured products inflation is a matter of particular concern, suggests more generalised inflationary pressures
— Impact of the recent monetary policy actions is still unfolding
— RBI says rate hike will contain inflation by reining in demand side pressures and anchor inflation expectations
— RBI says actions expected to mitigate the risk to growth from potentially adverse global developments
— RBI will persist with its anti-inflationary stance of monetary policy
— Although global commodity prices have moderate they still pose a risk to both domestic growth and inflation