Following are the highlights of RBI’s third quarter review of monetary policy:
*Key lending rate hiked by 0.25 per cent to 8 per cent
*Cash reserve ratio kept unchanged at 4 per cent
*Marginal Standing Facility (MSF) rate stands at 9 per cent
*GDP growth to be less than 5 per cent in the current fiscal
*Growth to improve to 5.5 per cent in 2014-15
*Current Account Deficit to be below 2.5 per cent this fiscal
*March-end inflation could exceed 8 per cent
*Rate hike will set economy securely on disinflationary path
*Growth likely to lose momentum in Q3 of 2013-14.
*Slowdown in economy getting increasingly worrisome
*Inflation is a tax that is grossly inequitable, falling hardest on the very poor
*Fiscal and monetary authorities should continue to work for macroeconomic stabilisation
*Henceforth, policy review to take place every two months.
Next review on April 1.