Mumbai, May 3 (IANS) Following are the highlights of the monetary policy for this fiscal unveiled by the Reserve Bank of India (RBI) Governor D. Subbarao Tuesday:
— Repo rate hiked by 50 basis points to 7.25 percent
— Reverse repo hiked by 50 basis points to 6.25 percent
— Saving bank deposit rates increased by 50 basis points to 4 percent
— Sensex, Nifty tank; banking, auto stocks battered
— Other policy rates such as statutory liquidity ratio and cash reserve ratio unchanged
— Henceforth the repo rate will be the only one independently varying policy rate
— Reverse repo rate to be no longer independent, will be pegged at a fixed 100 basis points below the repo rate
— Baseline projection for gross domestic product growth for 2011-12 at around 8 percent
— Annual whole sale price inflation pegged at 6 percent by end-March 2012
— RBI says rate hike will contain inflation by reining in demand side pressures and anchor inflation expectations
— RBI says actions expected to sustain growth in medium-term by containing inflation
— RBI will continue to persevere with its anti-inflationary stance
— Global commodity prices are a significant risk factor for both domestic growth and inflation
— Fiscal target set in the budget could be challenged by higher subsidy burden stemming from higher international crude oil prices
— Slackening in global recovery could impact economy through trade, finance and confidence channels
— Stance of monetary policy will be to ensure balance in liquidity flow
