NEW DELHI, 30/07/2012: Reserve Bank of India will make known whether it has opted for monetary easing and benchmark rate cut tomorrow when it announces the quarterly review of its monetary policy. Once a drought is confirmed by mid-August, food inflation will raise its head and headline inflation will be above 8% in no time. Further, the sharp depreciation of the rupee has made imports expensive and most of our imports are inelastic in nature. Photo: V.V. Krishnan | Photo Credit: V_V_Krishnan
Following are the highlights of RBI’s bi-monthly monetary policy statement:
Short-term lending (repo) rate unchanged at 8 per cent
Cash reserve ratio (CRR) unchanged at 4 per cent
Statutory liquidity ratio (SLR) retained at 22 per cent to unlock banking funds
GDP growth for current fiscal estimated at 5.5 per cent
Projects retail inflation at 6 per cent by March 2015-end
Projects retail inflation to lower in November, rise again in December
Says change in monetary policy stance at the current juncture is premature
Hints at lowering policy rate early next year, if fiscal, inflation conditions improve
Weak revenue realisation a threat to fiscal deficit target
Next bi-monthly policy statement on February 3
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Published on December 2, 2014
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