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Second Quarter Review of Monetary Policy click here
Second Quarter Review of Monetary Policy 2010-11
-Announced on the 2nd November 2010
IV. Monetary Measures
49. On the basis of the current assessment and in line with the policy stance as outlined in Section III, the following policy measures are announced.
Bank Rate
50. The Bank Rate has been retained at 6.0 per cent.
Repo Rate
51. It has been decided to:
increase the repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 6.0 per cent to 6.25 per cent with immediate effect.
Reverse Repo Rate
52. It has been decided to:
increase the reverse repo rate under the LAF by 25 basis points from 5.0 per cent to 5.25 per cent with immediate effect.
Cash Reserve Ratio
53. The cash reserve ratio (CRR) of scheduled banks has been retained at 6.0 per cent of their net demand and time liabilities (NDTL).
Expected Outcomes
54. These actions are expected to:
i. Sustain the anti-inflationary thrust of recent monetary actions and outcomes in the face of persistent inflation risks.
ii. Rein in rising inflationary expectations, which may be aggravated by the structural nature of food price increases.
iii. Be moderate enough not to disrupt growth.
55. The Reserve Bank will continue to closely monitor both global and domestic macroeconomic conditions. We will take action as warranted with a view to mitigating any potentially disruptive effects of lumpy and volatile capital flows and sharp movements in domestic liquidity conditions, consistent with the broad objectives of price and output stability.
56. Based purely on current growth and inflation trends, the Reserve Bank believes that the likelihood of further rate actions in the immediate future is relatively low. However, in an uncertain world, we need to be prepared to respond appropriately to shocks that may emanate from either the global or domestic environment.
Mid-Quarter Review of Monetary Policy 2010-11
57. The next mid-quarter review of Monetary Policy for 2010-11 will be announced through a press release on December 16, 2010.
Third Quarter Review of Monetary Policy 2010-11
58. The third quarter review of Monetary Policy for 2010-11 is scheduled on January 25, 2011.
Second Quarter Review of Monetary Policy 2010-11 ... click here
Highlights of 2nd Quarter Review of Monetary Policy 2010-2011... click here
RBI CREDIT AND MONETARY POLICIES (1999-2011)... click here
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