Mumbai, Jan 29 (Inditop.com) Following are the highlights of the third quarterly update of the monetary policy for this fiscal presented by Reserve Bank of India Governor D. Subbarao before chief executives of commercial banks here Friday:
– Cash reserve ratio hiked by 75 basis points to 5.75 percent in two stages
– Move to suck out excess liquidity worth Rs. 36,000 crore from system
– Bank rate retained at 6.0 percent
– Repo rate retained at 4.75 per cent
– Reverse repo rate retained at 3.25 percent
– India’s economic growth projection hiked to 7.5 percent from earlier 6 percent
– Annual inflation rate projection hiked to 8.5 percent from 6.5 percent
– Inflation risk looms larger when viewed in the context of global price movements
– Reserve Bank to monitor price situation closely and take further action as warranted
– Reduction in excess liquidity to help anchor inflationary expectations
– Recovery process to be supported without compromising price stability
– Central bank focus now on managing recovery from managing crisis
– There is still uncertainty about pace and shape of global recovery
– Stronger global recovery could prop oil prices sharply
– Monetary policy for 2010-11 to be announced April 20
