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Home  » Business » Highlights of Q3 Credit and Monetary Policy

Highlights of Q3 Credit and Monetary Policy

Source: PTI
Last updated on: January 24, 2006 14:23 IST
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Reserve Bank on India on Tuesday kept the bank rate and cash reserve ratio unchanged, but hiked reverse repo and repo rates by 0.25 per cent to 5.5 per cent and 6.5 per cent respectively, as part of measures to rein in inflation.

Following are the highlights of the third quarter review of the monetary policy:

  • 2005-06 GDP growth revised upwards to 7.5-8 per cent
  • Inflation unchanged at 5-5.5 per cent
  • Reverse repo rate up by 0.25 per cent to 5.50 per cent
  • Repo rate hiked by 0.25 per cent to 6.50 per cent
  • Bank rate kept unchanged at 6 per cent
  • Cash Reserve Ratio unchanged at 5 per cent
  • Money supply higher than projection of 14.5 per cent
  • Aggregate deposits higher than Rs 2,60,000 crore
  • PLR unchanged across banks
  • Credit by banks up 23.3 per cent at Rs 2,56,441 cr
  • Interest rates firmed up in almost all segments
  • Call money rates rose to 6.58 per cent in Jan, 2006
  • 91 & 365 day treasury bill rates up to 6.19, 6.30 pc
  • Deposit rates of over one yr maturity rose to 5.5-7 pc
  • FDI inflow at $3.6 bn in Apr-Oct, 2005
  • Food credit increased moderately by Rs 1,979 cr
  • Non-food credit rose by 24 per cent at Rs 2,54,462 cr
  • Food grain production target at 215 mt achievable
  • Signs of slowdown in private corporate sector
  • Centre's fiscal deficit at Rs 1,12,949 cr in Apr-Nov
  • Centre's revenue deficit at Rs 87,181 cr in Apr-Nov

The Monetary and Credit Policy 2005-2006

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