Reserve Bank’s annual policy review highlights

April 21st, 2009 - 7:06 pm ICT by IANS  

Mumbai, April 21 (IANS) The following are the highlights of the annual monetary policy review released by the Reserve Bank of India, the country’s central bank, Tuesday:
* Repo rate cut by 25 basis points to 4.75 percent

* Reverse repo rate cut by 25 basis points to 3.25 percent

* Cash reserve ratio remains unchanged

* GDP growth for 2009-10 to be around 6 percent

* GDP growth for 2008-09 at 6.5-6.7 percent

* Annual rate of inflation to be four percent by end of March 31, 2010

* Inflation to turn negative in early part of 2009-10

* Negative inflation may not persist beyond mid-2009-10

* Consumer price inflation to be in positive territory this fiscal

* Banks can open ATMs without prior approval

* Foreign currency convertible bond buyback limit increased to $100 million

* External commercial borrowing ceiling relaxation extended

* Current foreign bank policy to remain, review to happen once world economy recovers

* Money supply growth for 2009-10 forecast at 17 percent

* Government’s market borrowing schemes will infuse liquidity worth Rs.1.2 trillion in first half of 2009-10

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