Following are the highlights of the RBI’s Mid-Quarter Monetary Policy Review:
RBI keeps interest rate (repo rate) and cash reserve ratio (CRR) unchanged.
RBI says global economy has shown some signs of stabilisation although situation remains fragile.
At home, there are some incipient signs of pick-up though growth remains significantly below its recent trend.
Recent policy steps by the Govt and more reforms should help boost business sentiment, improve investment climate.
Inflationary pressure is moderating but high food and commodity prices continue to remain a risk.
RBI says it is closely monitoring the evolving growth-inflation dynamics.
RBI to update formal assessment of its growth and inflation projections for 2012-13 in January.
With inflation pressures ebbing, monetary policy has to shift focus and respond to threats to growth from now on, says RBI.