Mumbai, Oct 24 (IANS) Following are the highlights of the mid-term review of India's monetary policy conducted by Reserve Bank of India (RBI) Governor D. Subbarao Friday:
- Bank rate, repo rate and reverse repo rate kept unchanged
- Flexibility retained to conduct overnight auctions of securities
- Cash reserve ratio kept unchanged at 6.5 per cent
- Floating rate bonds to be issued at appropriate time
- Interest rate futures contracts to be launched in early 2009
- Domestic oil, shipping firms permitted to hedge foreign exchange risk overseas
- Economic growth forecast for 2008-09 revised to 7.5-8 percent
- Inflation rate projection retained at 7 percent by end-March 2009
- Commitment to bring down inflation to 5 percent at the earliest
- Commitment to moderate the rate of money supply to 17 percent
- Guidelines by November to rehabilitate potentially viable but sick small units
- A model scheme for financial literacy and credit counselling centres to be notified
- Signs of deterioration in the fiscal situation adding to demand pressures
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