Highlights of the ‘First Quarter Review of Monetary Policy 2012-13’, announced by the RBI today:
* RBI leaves key interest rate unchanged
* Statutory Liquidity Ratio (SLR) cut to 23% (from 24%)
* Growth projection lowered to 6.5%, from 7.3%
* March-end inflation pegged at 7%, up from 6.5%
* Containing inflation remains main focus
* Situation in the euro area continues to cause concern
* CAD, fiscal deficit pose risk to economic stability
* Asks government to cut fertiliser and fuel subsidy
* Open market operations to continue to inject liquidity
* Mid-Quarter Review of Monetary Policy on September 17
* Second Quarter policy review on October 30