Highlights of India’s monetary policy review

July 29th, 2008 - 2:35 pm ICT by IANS  


Mumbai, July 29 (IANS) Following are the highlights of India’s monetary policy review conducted by Reserve Bank Governor Y.V. Reddy Tuesday, against the backdrop of inflation rate ruling at a 13-year high and signs of a slowdown in economic growth: - Bank Rate kept unchanged

- Reverse repurchase rate unchanged

- Repurchase rate increased by 50 basis points to 9 percent

- Cash reserve ratio to be increased by 25 basis points to 9 percent

- Country’s economic growth projection lowered to around 8 percent

- Target to bring inflation down to below 7 percent by March 2009

- Medium-term target for inflation set at 3 percent

- Focus on price stability and orderly conditions for financial markets

- Focus also on continuation of the growth momentum

- Real economic growth now revised to 9 percent for 2007-08

- Wholesale price inflation ruling at 11.89 percent as on July 12

- Crude oil prices for India ruling at $121.9 per barrel

- Money supply increased by 20.5 percent as on July 4

- Deposits for commercial banks grew by 21.7 percent as on July 4

- Non-food credit rose by 25.9 percent

- Oil bonds worth $4.3 billion issued to state-run oil retailers

- Major downtrend witnessed in primary and secondary equity markets

- Exports up 21.7 percent during the first two months of this fiscal

- Oil imports up 48.6 percent on account of the surge in crude oil prices

- Foreign exchange reserves declined marginally to $307.1 billion

- Rupee depreciated by 5.4 percent against dollar this fiscal

- Inflation now a global phenomenon, with serious concerns for India

- Downside risks to global economic prospects appear to have intensified

- Mid-term Review of monetary policy on Oct 24

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