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Following are the highlights of the RBI’s third quarter monetary policy review:
*Short-term lending rate or repo rate reduced by 0.25 per cent to 7.75 per cent, first time in nine months.
*Reverse repo rate stands adjusted to 6.75 per cent.
*Cash reserve ratio (CRR) cut by 0.25 per cent to 4 per cent.
*CRR cut to infuse Rs 18,000 crore into the system from February 9
*RBI trims growth for fiscal 2012-13 to 5.5 per cent from 5.8 per cent.
*Policy action aimed at aiding growth by encouraging investment and improving liquidity to support credit flow.
*Review intends to contain inflation and anchor inflation expectations.
*RBI says inflation has come off its peak.
*Revises downward March-end inflation projection to 6.8 per cent from 7.5 per cent.
*Q3 current account deficit likely to widen beyond 5.4 per cent of GDP.
*Bank rate stands adjusted to 8.75 per cent with immediate effect.
*Next mid-quarter review of monetary policy on March 19.
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