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Old May 31st, 2013, 06:52 PM
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March 19, 2013 Mid-Quarter Monetary Policy Review: March 2013 Monetary and Liquidity Measures Based on an assessment of the current macroeconomic situation, it has been decided to: • reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.75 per cent to 7.5 per cent with immediate effect; Consequently, the reverse repo rate under the LAF stands adjusted to 6.5 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 8.5 per cent with immediate effect. Introduction 2. Since the Reserve Bank’s Third Quarter Review (TQR) of January 2013, global financial market conditions have improved, but global economic activity has weakened. On the domestic front too, growth has decelerated significantly, even as inflation remains at a level which is not conducive for sustained economic growth. Although there has been notable softening of non-food manufactured products inflation, food inflation remains high, driving a wedge between wholesale price and consumer price inflation, and is exacerbating the challenge for monetary management in anchoring inflationary expectations.

Global Economy 3. Global economic developments over the last few months present a mixed picture. US GDP estimates for Q4 of 2012 indicate a tentative upturn on the back of improvement in housing and payroll employment. However, US macroeconomic prospects are clouded by the uncertainty surrounding the temporary appropriations and the debt ceiling. In the euro area, plagued by contingent risks of political uncertainty and adjustment fatigue, GDP shrank for the third successive quarter in Q4. Output in Japan too contracted in Q4, and it is as yet unclear how effective the emerging package of stimulus measures will be and how quickly they will turn around the economy. While some emerging and developing economies (EDEs), including China, are gradually returning to faster growth, activity is slowing in others, hobbled by weak external demand and slack domestic investment. International non-fuel commodity prices have softened in Q4, but fuel prices have remained firm, despite the growth slowdown, portending persisting inflationary pressures, particularly for net energy importers. Domestic Economy Growth 4. India’s GDP growth in Q3 of 2012-13, at 4.5 per cent, was the weakest in the last 15 quarters. What is worrisome is that the services sector growth, hitherto the mainstay of overall growth, has also decelerated to its slowest pace in a decade. While overall industrial production growth turned positive in January, capital goods production and mining activity continued to contract. The composite purchasing managers’ index (PMI) declined in February, largely reflecting slower expansion in services. In the agriculture sector, the second advance estimates of kharif production indicate a decline in relation to the level last year. However, that may be offset, at least partly, by the rabi output for which sowing has been satisfactory.

for more information regarding mid-quarter policy of RBI I am attaching a pdf file below which is actually Press release of RBI.

Contact info:
S.B.S.Marg, Mumbai‐400001
Phone: 91 22 2266 0502
Fax: 91 22 2266 0358 RESERVE BANK OF INDIA
email: helpdoc@rbi.org.in

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I want to knowabout rbi mid-quarter monetary policy review
, please provide me information about it.?
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File Type: pdf RBI MID-QUARTER MONETARY POLICY REVIEW.pdf (192.5 KB, 21 views)
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Old May 10th, 2015, 05:47 PM
Super Moderator
Join Date: Nov 2011

Reserve Bank of India Third Quarter Review of Monetary Policy is on the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to:

Increase the policy repo rate under the liquidity adjustment facility (LAF) by 25
basis points from 7.75 per cent to 8.0 per cent; and

Keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per
cent of net demand and time liability (NDTL)

RBI Mid-Quarter Monetary Policy

Reserve Bank Of India
Shahid Bhagat Singh Road, Fort,
Mumbai, Maharashtra 400001 ‎
022 2266 1602 ‎

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