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Highlights of RBI's monetary policy review

PTI 05 Aug 2014, 12:52:04 PM IST
PTI
New Delhi: Following are the highlights of RBI's bi-monthly monetary policy statement:

* Short-term lending (repo) rate unchanged at 8%

* Cash reserve ratio (CRR) unchanged at 4%

* SLR cut by 0.50% to 22% to unlock banking funds

* Estimates GDP growth at 5.5% for current fiscal

* Targets 8% CPI inflation by January 2015, 6% by Jan 2016

* Lowers banks' SLR holdings in held-to-maturity category by 0.5% to 24%

* Govt policies to improve domestic demand, supply conditions

* Higher oil prices, pass-through of administered price increases pose upside risks to inflation

* Monsoons still a concern, posing risks to inflation

* Govt action on food management and fast-tracking project completion to improve supply

* Banking sector reforms will continue

* Next bi-monthly policy statement on September 30.