Following are the highlights of RBI’s bi-monthly monetary policy statement:
* Short-term lending (repo) rate unchanged at 8%
* Cash reserve ratio (CRR) unchanged at 4%
* SLR cut by 0.50% to 22% to unlock banking funds
* Estimates GDP growth at 5.5% for current fiscal
* Targets 8% CPI inflation by January 2015, 6% by Jan 2016
* Lowers banks’ SLR holdings in held-to-maturity category by 0.5% to 24%
* Govt policies to improve domestic demand, supply conditions
* Higher oil prices, pass-through of administered price increases pose upside risks to inflation
* Monsoons still a concern, posing risks to inflation
* Govt action on food management and fast-tracking project completion to improve supply
* Banking sector reforms will continue
* Next bi-monthly policy statement on September 30.