Reserve Bank of India - Credit Policy announcement at FinGad.com

Vote

Reserve Bank of India - Credit Policy announcement

Categorie: Emerging Markets
Submitted 3 months ago by

Narasimhan , Owner at Krish Systems

RBI Credit Policy The Reserve Bank has reviewed credit policy concluding that its prime task is to address stability of prices by effectively controlling the monetary supply. Therefore it has taken steps to reduce money supply adjusting short term interest rates to curb credit growth. Accordingly it has increased the repo rate by 50 basis points to 9.0 percent and cash reserve ratio has been increased by 25 basis points with effect from August 30th, 2008. The economic indicators have been revisited. GDP growth is likely to be around 8.0 percent as against 8.0 – 8.5 percent forecast earlier. Inflation is targeted to settle at 7% by March 2009 and all possible steps will be taken to achieve that. The long term goal is to achieve inflation rate of 3.0% and in the medium term inflation is to be kept under 5.0%. RBI has emphasized on inclusive growth, improving credit delivery and quality. RBI’s review had good points to cherish on the economic growth. GDP growth in 2007-08 was revised by Central Statistical Organization to 9.0 percent. Inflation based on whole sale price index continues to grow faster than consumer price indices for various categories of persons, the former being higher by almost 4.0 percent. Money supply as measured by M3 has increased by 20.5% and RBI would prefer to have this reduced to 17% to manage the high levels of inflation. The year on year growth of bank deposits till July 4th was lower by 2.9% signaling slow down in money supply. Oil com... More...

[ 0 Comments | Send To A Friend | Bookmark Review ]

0 comments ↓

Please Login or Register to comment