In a bid to clamp down on resurgent inflation, the Reserve Bank of India, in its first monetary policy review of 2012, raised repo and reverse repo rates by 50 basis points,while lowering the economic growth projection to 8% for the current fiscal.The RBI has also increased the saving bank rate by 50 basis points to 4% to give higher returns to depositors in the wake of high inflation.RBI Governor D Subbarao announced these measures as part of annual credit policy to contain inflation, which is hovering around 9%, and sustain economic growth in the medium-term.
RBI has pegged GDP growth rate for the current fiscal at 8% against the government's projection of 9%. The economy grew by 8.6% in FY11.The reverse repo, the rate at which bank park funds with RBI, has been raised by 50 basis points to 6.25%. CRR remains unchanged at 6%.Savings rate has been increased to 4% from 3.5% for the first time since 2003.Inflation forecast for FY12 has been kept around 6% with an upward bias.Six-months comply to banks over 10% invesment in Mutual Fund liquid funds
RBI has pegged GDP growth rate for the current fiscal at 8% against the government's projection of 9%. The economy grew by 8.6% in FY11.The reverse repo, the rate at which bank park funds with RBI, has been raised by 50 basis points to 6.25%. CRR remains unchanged at 6%.Savings rate has been increased to 4% from 3.5% for the first time since 2003.Inflation forecast for FY12 has been kept around 6% with an upward bias.Six-months comply to banks over 10% invesment in Mutual Fund liquid funds
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