• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Highlights monetary policy statement 2012 13
 

Highlights monetary policy statement 2012 13

on

  • 2,512 views

Monetary Policy, Subba Rao, RBI, Highlights

Monetary Policy, Subba Rao, RBI, Highlights

Statistics

Views

Total Views
2,512
Views on SlideShare
2,484
Embed Views
28

Actions

Likes
0
Downloads
114
Comments
0

2 Embeds 28

http://aj-learningplus.blogspot.in 25
http://aj-learningplus.blogspot.com 3

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Highlights monetary policy statement 2012 13 Highlights monetary policy statement 2012 13 Presentation Transcript

    •  Dr. D. Subbarao in statement on the Monetary Policy for 2012-12, indicates the tough stand RBI has taken on number of fronts in last three years or so. Although, after a gap of three years, Reserve Bank Governor D Subbarao slashed short term lending rate by 0.50 per cent to 8 per cent, by reducing the repo rate, yet it signaled that there will be no further cuts if inflation continued its ugly head. Some of the major highlights of the Monetary Policy statement are as follows:-
    •  Repo Rate cut by 50 bps to 8.00 percent; Reverse repo rate adjusted 7.00 percent Bank Rate and MSF adjusted to 9.00 percent (The borrowing limit of banks under marginal standing facility has been increased to 2 percent from 1 percent) Cash reserve ratio unchanged at 4.75% . Similarly SLR remains unchanged at 24%
    •  Says modest growth slowdown, upside risks to inflation limit space for further reduction in policy rates Policy stance aims to provide greater liquidity cushion to financial system Liquidity moving towards comfort zone, proactive steps will be taken to restore to comfort zone if needed.
    •  RBI has pegged the GDP growth rate for 2012-13 at 7.3 per cent. It is expected to be 6.9 per cent in 2011-12. Dr. Subbarao, ruled out further reduction in policy rate in the immediate future citing persistent upside risks to inflation and possible fiscal slippages driven by higher oil subsidies. It expects the inflation to be around 6.5 per cent by March 2013. Money supply growth projected at 15 percent, credit growth at 17 percent and deposits at 16 percent in 2012-13
    •  Says current account deficit level unsustainable Financing of current account deficit will continue to pose a major challenge Risk of pass-through of administered prices into inflation limited on reduced corporate pricing power Non-food manufactured products inflation expected to remain contained