Highlights of India's monetary policy update

Tuesday, 28 July 2009, 22:31 IST   |    1 Comments
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Mumbai: Following are the highlights of the first quarterly update of India's monetary policy for this fiscal, unveiled by Reserve Bank of India Governor D. Subbarao here Tuesday: * Bank rate retained at 6 percent * Repo rate unchanged at 4.75 percent * Reverse repo rate unchanged at 3.25 percent * Cash reserve ratio unchanged at 5 percent * Statutory liquidity ratio unchanged at 24 percent * Inflation forecast hiked to 5 percent from 4 percent * Negative inflation only a statistical phenomenon * Balance between liquidity and inflation main concern * India's growth now forecast at 6 percent with upward bias * More scope for cutting rates by commercial banks * Money supply may grow 18 percent this fiscal * Policy will ensure enough commercial credit
Source: IANS