Mumbai, Oct 27 (Inditop.com) Following are the highlights of the half-yearly review of India’s monetary policy for 2009-10, conducted by Reserve Bank Governor D. Subbarao:
– Statutory liquidity ratio hiked to 25 percent from 24 percent
– Bank rate left unchanged at 6 percent
– Repurchase rate left unchanged at 4.75 percent
– Reverse repurchase rate left unchanged 3.25 percent
– Cash reserve ratio left unchanged at 5 percent
– Annual inflation rate to 6.5 percent by the end of March
– Retains growth projection for the country’s economy at 6 percent for current fiscal
– Vigil on inflation trends to respond swiftly and effectively
– Monitor liquidity situation closely and manage it actively
– Maintain a regime of price and financial stability with support for growth
– Final guidelines on repo in corporate bonds will be issued by end-November
– Futures trading to be also allowed in Euro, Yen, Pound-Sterling
– Combined net borrowing of central, state governments to be 34 percent higher than earlier evaluated
– Special term repo for mutual funds, and non-banking and housing finance firms discontinued
– Third quarter review of policy on Jan 29
