Highlights of monetary policy review by central bank

IANS

National,Business

Fri, 24 Oct 2008: 

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 auctis 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