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Following are the highlights of Reserve Bank of India’s first-quarter monetary policy review
* Key short term lending rate (repo rate) kept unchanged at 7.25 per cent
* Cash reserve ratio too unchanged at 4 per cent
* Cuts GDP forecast for FY’14 to 5.5 per cent from 5.7 per cent earlier
* Rupee depreciation a threat to inflation
* Tight liquidity measures to be rolled back once Rupee stabilises
* To use all instruments to keep March-end inflation at 5 per cent
* Policy measures aimed at addressing risks to macroeconomic stability from external sector,
* Biggest threat to macroeconomic stability stems from the external sector
* Immediate structural steps needed to contain the current account deficit
* International crude oil prices are firming up
* Growth, inflation to determine future policy actions
* This is RBI Governor D Subbarao’s last policy before expiry of his five year term
* Next mid-quarter review of policy on September 18; second quarter policy review on October 29.
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