Following is the press release issued by the central bank today:
Dr. Y. Venugopal Reddy, Governor, presented the mid-term review of annual policy for the year 2007-08 today in a meeting with chief executives of major commercial banks.
The Mid-term Review consists of two parts: Part I Mid-term Review of the Annual Statemenat on Monetary Policy for the Year 2007-08; and Part II Mid-term Review of the Annual Statement on Developmental and Regulatory Policies for the Year 2007-08.
Highlights
Bank Rate, Repo Rate and Reverse Repo Rate kept unchanged.
The flexibility to conduct overnight repo or longer term repo including the right to accept or reject tender(s) under the LAF, wholly or partially, is retained.
CRR increased by 50 basis points to 7.5 per cent effective fortnight beginning November 10, 2007.
GDP growth forecast retained at 8.5 per cent during 2007-08, assuming no further escalation in international crude prices and barring domestic or external shocks
Inflation to be contained close to 5.0 per cent during 2007-08 while resolving to condition expectations in the range of 4.0-4.5 per cent, with a medium-term objective of inflation at around 3.0 per cent.
Moderating net capital flows so that money supply is not persistently out of alignment with indicative projection of 17.0-17.5 per cent.
Covering of
