RBI hikes CRR by 25bps; repo rates unchanged
The central bank, however, kept the repo and reverse repo rates unchanged.
Some other key highlights of the policy are as follows:
* Bank Rate, Reverse Repo Rate and Repo Rate kept unchanged.
* Scheduled banks required to maintain CRR of 8.25 per cent with effect from the fortnight beginning May 24, 2008.
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* GDP growth projection for 2008-09 in the range of 8.0- 8.5 per cent.
* Inflation to be brought down to around 5.5 per cent in 2008-09 with a preference for bringing it close to 5.0 per cent as soon as possible. Going forward, the resolve is to condition policy and perceptions for inflation in the range of 4.0-4.5 per cent so that an inflation rate of around 3.0 per cent becomes a medium-term objective.
* High priority to price stability, well-anchored inflation expectations and orderly conditions in financial markets while sustaining the growth momentum.
* Swift response on a continuous basis to evolving adverse international and domestic developments through both conventional and unconventional measures.
* Emphasis on credit quality and credit delivery while pursuing financial inclusion.
* Deposits projected to increase by around 17.0 per cent or Rs.5,50,000 crore during 2008-09.
* A clearing and settlement arrangement for OTC rupee derivatives proposed.
* Currency futures to be introduced in eligible exchanges in consultation with the SEBI; broad framework to be finalised by May 2008.
Click here to download RBI Governor's Annual Policy Statement for the year 2008-09.