Highlights of RBI’s mid-quarter monetary policy review

Following are the highlights of RBI’s mid-quarter monetary policy review
  • Key short-term lending rate (repo rate) hiked by 0.25 per cent to 7.5 per cent.
  • Borrowing rate for banks reduced under marginal standing facility by 0.75 per cent to 9.5 per cent.
  • Minimum daily liquidity maintenance of CRR eased to 95 per cent from 99 per cent.
  • Cash reserve ratio (CRR) maintained at 4 per cent.
  • Maiden policy announcement by new RBI Governor Raghuram Rajan
  • Inflation worrisome, no room for complacency.
  • WPI inflation will be higher than that projected for rest of the year.
  • Economic growth trailing below potential.
  • Pace of infrastructure project completion subdued, new projects’ starts remain muted.
  • Next monetary policy review on October 29.

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