3 may
Finance Minister, Pranab Mukherjee said that the RBI's policy measures were well warranted given the erratically high inflation figures. The RBI had to hike rates to contain the surging inflation numbers that were hampering growth. "We have taken enough of measures to ensure the supply side is maintained and the gap between demand and supply has been reduced," he said.
FY12 GDP is expected to be at 7.4% to 8.5% with 90% probability
MSS rate to be 100 bps higher than repo rate
Interest rate cap on MFI loans at 26%. RBI will appoint a committee to review priority sector lending.
The RBI expects inflation to remain elevated for the first half of the fiscal year and after will mellow down to 6% by March 2012.
Repo rate has been increased by 50 bps from 6.75% to 7.35%. Reverse repo will be adjusted to 6.25%, which will from now on be 100 bps blow the repo rate. The cash reserve ratio (CRR) has been left unchanged.
The reverse repo rate will no longer be an independent variable
The Indian indices drop as the RBI governor makes his monetary policy announcements.
Finance Minister, Pranab Mukherjee said that the RBI's policy measures were well warranted given the erratically high inflation figures. The RBI had to hike rates to contain the surging inflation numbers that were hampering growth. "We have taken enough of measures to ensure the supply side is maintained and the gap between demand and supply has been reduced," he said.
FY12 GDP is expected to be at 7.4% to 8.5% with 90% probability
MSS rate to be 100 bps higher than repo rate
Interest rate cap on MFI loans at 26%. RBI will appoint a committee to review priority sector lending.
The RBI expects inflation to remain elevated for the first half of the fiscal year and after will mellow down to 6% by March 2012.
Repo rate has been increased by 50 bps from 6.75% to 7.35%. Reverse repo will be adjusted to 6.25%, which will from now on be 100 bps blow the repo rate. The cash reserve ratio (CRR) has been left unchanged.
The reverse repo rate will no longer be an independent variable
The Indian indices drop as the RBI governor makes his monetary policy announcements.
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