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Highlights of monetary policy review by central bank

BUS9 Business/Business/Economy Highlights of monetary policy review by central bank Mumbai, Oct 24 IANS Following are the highlights of the mid-term review of India's monetary policy conducted by Reserve Bank of India RBI Governor D. Subbarao Friday: - Bank rate, repo rate and reverse repo rate kept unchanged - Flexibility retained to conduct overnight auctions of securities - Cash reserve ratio kept unchanged at 6.5 per cent - Floating rate bonds to be issued at appropriate time - Interest rate futures contracts to be launched in early 2009 - Domestic oil, shipping firms permitted to hedge foreign exchange risk overseas - Economic growth forecast for 2008-09 revised to 7.5-8 percent - Inflation rate projection retained at 7 percent by end-March 2009 - Commitment to bring down inflation to 5 percent at the earliest - Commitment to moderate the rate of money supply to 17 percent - Guidelines by November to rehabilitate potentially viable but sick small units - A model scheme for financial literacy and credit counselling centres to be notified - Signs of deterioration in the fiscal situation adding to demand pressures --Indo-Asian News Service ap/dg 196 Words * 24101259