Highlights of RBI quartely monetary policy review

Mumbai, July 31: | Updated: Jul 31 2007, 19:18pm hrs
Following are the highlights of RBI's first quarterly review of monetary policy for 2007-08.

- CRR hiked 0.5 pc to 7 per cent

- Other key rates (repo, reverse repo, bank rate) unchanged

- Bank rate 6 pc, reverse repo 6 pc, repo 7.75 pc

- Daily reverse repo cap of Rs 3000 cr withdrawan from Aug 6

- GDP projection retained at 8.5 pc

- Inflation projection unchanged at close to 5 pc

- No more second LAF transactions daily from August 6

- Non-food credit growth decelerated

- But increase in money supply warrants appropriate response

- Indications that impulses of growth getting broad-based

- Upward pressure on inflation persists, though inflation down

- Low inflation to support current expansionary phase

- Demand pressures persist in the economy

- Inflationary pressure from global developments persist

- Must assess risks to inflation outlook from int.crude prices

- Global food, energy prices likely to settle at higher levels

- Next quarterly review on October 30, 2007.