By IANS,
Mumbai : Following are the highlights of the first quarter review of monetary policy for fiscal 2010-11 presented by Reserve Bank of India Governor D. Subbarao to chief executives of commercial banks here Tuesday:
— Repo rate hiked by 25 basis points to 5.75 percent
— Reverse repo rate hiked by 50 basis points to 4.5 percent
— Cash reserve ratio unchanged at 6 percent
— Statutory Liquid ratio unchanged at 25 percent
— Bank rate unchanged at 6 percent
— Inflation outlook raised to 6 percent by the end of March 2011 from 5.5 percent projected earlier
— Growth in the gross domestic product for this fiscal is projected at 8.5 percent against 8 percent earlier.
— Monetary policy intended to inflation and anchor inflationary expectations and respond to any further build-up of inflationary pressures
— Rate hike will help maintain financial conditions conducive to sustaining growth
— RBI will undertake mid-quarter reviews in about 45 days after each quarterly review
— Next mid-quarter reviews will be in September, December and March
— Second quarter review of monetary policy on November 2, 2010