GOVERNOR'S HAWK EYE FOR INFLATION

GOVERNOR'S HAWK EYE FOR INFLATION

RBI governor Duvvuri Subbarao has focussed more on battling inflation than reviving growth in his monetary policy review, which released more cash for borrowings by slashing a bond requirement that holds back deposits.

8% unchanged. The repo rate at which banks borrow from the RBI. It also kept the reverse repo rate - at which banks park excess cash with the RBI, at 7%. This keeps the price of loans at the same level.

23% one percentage point cut. RBI cut the statutory liquidity ratio (SLR)-the share of bank deposits that must be parked in government bonds and gold, from 24%.

4.75% The current CRR (Cash Reserve Ratio) or the deposits bank have to park with RBI. A 0.25 percentage point cut in CRR would have injected. 

Rs16000crore, to be pool of banks' lendable resources.

7% RBI's expectation on headline inflation at the end of March, 2013, up from 6.5%.

 7% RBI's GDP growth projection for 2012-13, down from 7.3%.