Key points made by RBI governor in monetary policy review

Tuesday, 27 January 2009, 22:35 IST   |    1 Comments
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Mumbai: Following are some key points made by Reserve Bank of India (RBI) Governor D. Subbarao in his quarterly monetary policy review before the chief executives of commercial banks here Tuesday: - This quarterly review is set in the context of a deteriorating global economic outlook and heightened uncertainty about the global financial sector. - The initial hope that the crisis could be contained in the financial sector has been belied. - There is now distinct evidence of further slowdown as a consequence of the global downturn. - The knock-on effects of the global financial crisis, economic slowdown, and falling commodity prices are affecting the Indian economy in several ways. - As an integral part of a globalising world, India cannot be expected to remain immune to a global crisis of this nature and magnitude. - In responding to the crisis, India has to share the uncertainty on the way forward just like the rest of the world. - To arrest the moderation in economic growth, it is critical that banks expand the flow of credit to productive sectors of the economy, and do so at viable rates. - The actions of the Reserve Bank since mid-September 2008 have resulted in augmentation of actual or potential liquidity of over 388,000 crore (3,880 billion). - The response to the Reserve Bank's policy actions over the last several months is still unfolding. - The projection of overall real gross domestic product growth for 2008-09 is revised downwards to 7 percent with a downward bias. - Keeping in view the global trend in commodity prices and the domestic demand-supply balance, wholesale price inflation is now projected to decelerate to below 3 percent by end-March 2009.
Source: IANS