Reserve Bank of India (RBI) Mid-Quarter Monetary Policy Review Highlights.
- Reserve Bank keeps interest rate (Repo rate and Reverse Repo Rate) and Cash Reserve Ratio (CRR) unchanged.
- Reserve Bank says global economy has shown some signs of stabilization although situation remains fragile.
- In India, there are some incipient signs of pick-up though growth remains significantly below its recent trend.
- Recent policy steps by the Govt and more reforms should help boost business sentiment, improve investment climate.
- Inflationary pressure is moderating but high food and commodity prices continue to remain a risk.
- RBI says it is closely monitoring the evolving growth-inflation dynamics.
- Reserve Bank to update formal assessment of its growth and inflation projections for 2012-13 in January.
- With inflation pressures ebbing, monetary policy has to shift focus and respond to threats to growth from now on, says Reserve Bank of India.