Highlights of monetary policy review by central bank

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