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First Quarter Review of Monetary Policy Statement 2012-13
-Announced on the 31st July 2012 by Dr. D. Subbarao, Governor, Reserve Bank of India

RBI retains key rates at the same level, however reduces Statutory Liquidity Ratio (SLR) from 24.0 per cent to 23.0 per cent of their NDTL with effect from the fortnight beginning August 11, 2012 ... Click Here


Since the Monetary Policy Statement for 2012-13 in April 2012, macroeconomic conditions have deteriorated. Much of the global economy is in a synchronised slowdown, having lost the upward momentum seen in the early months of the year. Despite the slowing global economy, the outlook for commodity prices is uncertain. The situation in the euro area continues to cause concern even as the prospects of immediate default have been averted. While exports of emerging and developing economies (EDEs) have been dented by the weak global economic activity, capital flows into them have declined markedly because of the strains in the euro area financial market conditions.

2. Domestically, the macroeconomic situation continues to raise concerns. While growth has slowed down significantly, inflation remains well above the comfort zone of the Reserve Bank. The large twin deficits, viz. current account deficit (CAD) and fiscal deficit, pose significant risks to macroeconomic stability. Against this backdrop of heightened global uncertainty and domestic macroeconomic pressures, the challenge for monetary policy is to maintain its priority of containing inflation and lowering inflation expectations. At the same time, monetary policy has also to be sensitive to risks to growth and financial stability.

3. In the above context, this Statement should be read and understood together with the detailed review in Macroeconomic and Monetary Developments released yesterday by the Reserve Bank.

4. This Statement is organised in four Sections: Section I provides an overview of global and domestic macroeconomic developments. Section II sets out the outlook and projections for growth, inflation and monetary aggregates. Section III explains the stance of monetary policy. Section IV specifies the monetary and liquidity measures.

I. The State of the Economy ... Click Here

II. Outlook and Projections ... Click Here

III. The Policy Stance... Click Here

IV. Policy Measures... Click Here

Click Here For Press Statement by Dr. D. Subbarao, Governor on First Quarter Review

RBI has released Macroeconomic and Monetary Developments: First Quarter Review document to serve as a background to the First Quarter Review of Monetary Policy 2011-12 . ...Click Here

Highlights of First Quarter Review of Monetary Policy 2010-11....Click Here

Mid-Quarter Review of Monetary Policy 2012-13

54. The next Mid-Quarter Review of Monetary Policy for 2012-13 will be put out through a press release on Monday, September 17, 2012.

Second Quarter Review of Monetary Policy 2012-13

55. The Second Quarter Review of Monetary Policy for 2012-13 is scheduled for Tuesday, October 30, 2012

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