MONETARY MEASURES ================= * No change in banks' SLR norms. * Repo, reverse repo, CRR, Bank Rate kept unchanged. * Have option to conduct longer term repo, reverse repo. * Third quarter review of monetary policy Jan 27. * FY09 GDP target cut to 7.5-8.0% vs 8.0% earlier. * FY09 inflation target unchanged at 7% by end-Mar. * M3, credit, deposit growth target FY09 kept unchanged.
GDP GROWTH ========== * Underlying India economic cycle turning in tune with global economies. * Maintaining financial stability policy priority. * FY09 GDP target cut to 7.5-8.0% vs 8.0% earlier. * End March inflation target maintained at 7.0%. * Solution to global crisis is "beyond rule book". * Need unconventional, unorthodox policy actions. * Need close coordination in govt, regulatory agencies. * Global financial situation remains uncertain, unsettled. * "India cannot be immune" to global crisis. * Global, existing domestic pressure challenge to policy. * Have been proactive, taken steps to ease pressures. * Confident of minimising global crisis impact on economy. * India econ fundamentals strong, financial system healthy. * Outlook on GDP uncertain on recent global developments. * Downside risks to econ up on global developments. * Adverse impact via trade, financial channels "have amplified". * Export competitiveness to erode if global recession deep. * Global recession may also restrict external finance. * Need to bring inflation down to be conducive for growth. N.Sukumar Research Anayst --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
