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Following are the highlights of the third-quarter review of the monetary policy announced by the Reserve Bank of India Governor, Dr D. Subbarao:
*Cash reserve ratio lowered by 0.5 per cent to 5.5 per cent.
*Short term lending rate (repo) retained at 8.5 per cent.
*Short-term borrowing rate unchanged at 7.5 per cent.
*CRR cut to infuse additional Rs 32,000 crore liquidity.
*GDP growth estimate for 2011-12 cut to 7 per cent from 7.6 per cent.
*Downside risks to growth have increased.
*March-end inflation projection at 7 per cent.
*Upside risks to inflation remains.
*Bank rate retained at 6 per cent.
*Fiscal slippages threat to economic stability.
*Investment, capital inflows have slowed down.
*Fiscal deficit to overshoot Budget estimate.
*Injected Rs 70,000 cr in November-January through OMOs.
*Next review of monetary policy on March 15.
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