RBI's monetary policy review 5 August 2014: Highlights

Freinds..Here are the highlights of RBI’s bi-monthly monetary policystatement released on 5 August 2014.

>> Short-term lending (repo) rate unchanged at 8%

>> Cash reserve ratio (CRR) unchanged at 4%

>> SLR cut by 0.50% to 22% to unlock banking funds

>> Estimates GDP growth at 5.5% for current fiscal

>> Targets 8% CPI inflation by January 2015, 6% by Jan 2016

>> Lowers banks’ SLR holdings in held-to-maturity category by 0.5% to 24%

>> Govt policies to improve domestic demand, supply conditions

>> Higher oil prices, pass-through of administered price increases pose upside risks to inflation

>> Monsoons still a concern, posing risks to inflation

>> Govt action on food management and fast-tracking project completionto improve supply

>> Banking sector reforms will continue

>> Next bi-monthly policy statement on September 30.

Current RBI rates as on 5 August 2014 are as follows:

 1) Bank Rate- 9%

2) Repo Rate- 8%

3) Reverse Repo rate- 7%

4) Cash Reserve Ratio (CRR)- 4%

5) Statutory Liquidity Ratio (SLR)- 22%

6) Marginal Standing Facility- 9%