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The half-yearly review of India's monetary policy for 2009-10 was conducted by Reserve Bank Governor D. Subbara today in Mumbai amidst the presence of CEOs of private banks. The highlights are as given below:-
- Statutory liquidity ratio hiked to 25 percent from 24 percent
- Bank rate left unchanged at 6 percent
- Repurchase rate left unchanged at 4.75 percent
- Reverse repurchase rate left unchanged 3.25 percent
- Cash reserve ratio left unchanged at 5 percent
- Annual inflation rate to 6.5 percent by the end of March
- Retains growth projection for the country's economy at 6 percent for current fiscal
- Vigil on inflation trends to respond swiftly and effectively
- Monitor liquidity situation closely and manage it actively
- Maintain a regime of price and financial stability with support for growth
- Final guidelines on repo in corporate bonds will be issued by end-November
- Futures trading to be also allowed in Euro, Yen, Pound-Sterling
- Combined net borrowing of central, state governments to be 34 percent higher than earlier evaluated
- Special term repo for mutual funds, and non-banking and housing finance firms discontinued
- Third quarter review of policy on Jan 29
