Following are the highlights of RBI8217;s mid-quarter monetary policy review:
Key short term lending rate repo rate kept unchanged at 7.25 pc
Cash reserve ratio too unchanged at 4 per cent
Rupee fall,external sector risks and elevated food inflation areas of concern
Continuing weakness in manufacturing needs to be urgently reversed
RBI asks govt to create conducive environment for private investment,improve project clearances to promote growth
Durable receding of inflation will open space for monetary policy action
Reducing CAD is a challenge; RBI pitches for stable foreign inflows to finance it
Steps to curb gold imports,easing commodity prices to lower CAD in 2013-14
Balance of Payments,inflation and growth rate to determine future monetary stance
Need to be vigilant about global uncertainty and its impact on capital flows
RBI ready to use all available instruments to deal with any adverse development in external sector
Positive rating action should have favourable impact on investor confidence
First quarter review of policy on July 30.