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Apr 29, 2008

RBI announces Annual Policy Statement for the year 2008-09

IN · · 1 comment
The Governor of Reserve Bank of India Dr. Y. Venugopal Reddy has presented today the Annual Policy Statement for the year 2008-09 on April 29, 2009, according to the media reports. The RBI has taken measures to tackle the inflation in its annual policy. The RBI has raised the Cash Reserve Ratio (CRR) by 25 basis points and Scheduled banks required to maintain CRR of 8.25 per cent with effect from the fortnight beginning May 24, 2008. This measure aims to check the credit flow in the country. The central bank, however, kept the repo and reverse repo rates unchanged.

Some of the highlights of the Annual Policy Statement for 2008-09 are as follow:
  • Bank Rate, Reverse Repo Rate and Repo Rate kept unchanged.
  • Scheduled banks required to maintain CRR of 8.25 per cent with effect from the fortnight beginning May 24, 2008.
  • GDP growth projection for 2008-09 in the range of 8.0- 8.5 per cent.
  • Inflation to be brought down to around 5.5 per cent in 2008-09 with a preference for bringing it close to 5.0 per cent as soon as possible. Going forward, the resolve is to condition policy and perceptions for inflation in the range of 4.0-4.5 per cent so that an inflation rate of around 3.0 per cent becomes a medium-term objective.
  • High priority to price stability, well-anchored inflation expectations and orderly conditions in financial markets while sustaining the growth momentum.
  • Swift response on a continuous basis to evolving adverse international and domestic developments through both conventional and unconventional measures.
  • Emphasis on credit quality and credit delivery while pursuing financial inclusion.
  • Deposits projected to increase by around 17.0 per cent or Rs.5,50,000 crore during 2008-09.
  • A clearing and settlement arrangement for OTC rupee derivatives proposed.
  • Currency futures to be introduced in eligible exchanges in consultation with the SEBI; broad framework to be finalised by May 2008.
  • Indian companies to be allowed to invest in overseas in energy and natural resources sectors.
  • Reserve Bank of carry out supervisory review of banks' exposure to the commodity sector.

1 comment:

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