RBI Mid-Quarter Monetary Policy Review Highlights

Reserve Bank of India (RBI) Mid-Quarter Monetary Policy Review Highlights.

Reserve Bank of India (RBI) on December 18, 2012 has released it’s mid-quarter monetary policy review report. Following are the highlights of the RBI’s Mid-Quarter Monetary Policy Review.

  • 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.

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