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.