there are some incipient signs of pick-up though growth remains significantly below its recent trend. The industrial output growth bounced back to 8.2 per cent in October, 2012, against a contraction of 5 per cent in the same month last year.
The Indian economy grew by 5.4 per cent in the first half (April-September) of the current fiscal, against 7.3 per cent in the corresponding period last year.
The RBI in its second quarter policy review had projected the GDP growth for the current fiscal at 5.8 per cent.
The mid-quarter review of the economy said, "both fiscal and monetary policy, however, would need to be supportive to sustain investor confidence. The government will also have to address the concerns relating to structural supply side bottlenecks".
Following are the highlights of RBI's Mid-Quarter Monetary Policy Review:
* RBI keeps interest rate (repo rate) and cash reserve ratio (CRR) unchanged.
* RBI says global economy has shown some signs of stabilisation although situation remains fragile.
* At home, 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 moderating but high food and commodity prices continue to remain a risk.
* RBI says it is closely monitoring the evolving growth-inflation dynamics.
* RBI 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 RBI.
RBI keeps rates unchanged, hints at rate cut in January
(Reuters) India's central bank kept interest rates on hold on Tuesday, ignoring government pressure to reduce borrowing costs, but said it was shifting its focus towards boosting a flagging economy, raising the odds of a rate cut as early as January.
The Reserve Bank of India (RBI) reiterated guidance from its last policy meeting in October that it was likely to resume monetary policy easing in the January-March quarter, as inflation pressures are expected to ease in the next few months.
Wary of stubbornly high inflation, the RBI has kept its