<p><span>In its quarterly review of the monetary policy, the Reserve Bank while keeping the repo and reverse repo --shot-term rates at which banks lend and borrow from RBI-- retained economic growth projection at 6 per cent with an upward bias in current fiscal.</span></p>.<p><span><br />The policy, in line with the expectations of the bankers, however, said that there are progressive signs of recovery with increased food stocks, positive industrial production and optimistic business confidence.</span></p>.<p><span><br />However, it added, there are some negative signs like delayed and deficient monsoon, food price inflation, rebound in global commodity prices, continuing weak external demand and high fiscal deficit.</span></p>.<span><br />RBI expects inflation to scale up to around five per cent by March 2010. <br /><br /></span>.<p><span>Following are the highlights of the first quarterly review of RBI’s annual monetary policy</span></p>.<p><span><br />* Key short-term rates, ratios unchanged</span></p>.<p><span>* Repo rate at 4.75 pc, reverse repo 3.25 pc</span></p>.<p><span>* Bank rate at 6 pc, CRR 5 pc</span></p>.<p><span>* Growth pegged at 6 pc with upward bias for 2009-10</span></p>.<p><span>* WPI to be negative for a few more months</span></p>.<p><span>* Inflation seen at 5 pc by fiscal-end</span></p>.<p><span>* Enough liquidity in the system</span></p>.<p><span>* Fiscal deficit remain a challenge</span></p>.<p><span>* Large borrowings can crowd out private investment</span></p>.<p><span>* Need to push financial sector, governance reforms</span></p>.<span>* Money supply growth to remain at over 20 pc</span>
<p><span>In its quarterly review of the monetary policy, the Reserve Bank while keeping the repo and reverse repo --shot-term rates at which banks lend and borrow from RBI-- retained economic growth projection at 6 per cent with an upward bias in current fiscal.</span></p>.<p><span><br />The policy, in line with the expectations of the bankers, however, said that there are progressive signs of recovery with increased food stocks, positive industrial production and optimistic business confidence.</span></p>.<p><span><br />However, it added, there are some negative signs like delayed and deficient monsoon, food price inflation, rebound in global commodity prices, continuing weak external demand and high fiscal deficit.</span></p>.<span><br />RBI expects inflation to scale up to around five per cent by March 2010. <br /><br /></span>.<p><span>Following are the highlights of the first quarterly review of RBI’s annual monetary policy</span></p>.<p><span><br />* Key short-term rates, ratios unchanged</span></p>.<p><span>* Repo rate at 4.75 pc, reverse repo 3.25 pc</span></p>.<p><span>* Bank rate at 6 pc, CRR 5 pc</span></p>.<p><span>* Growth pegged at 6 pc with upward bias for 2009-10</span></p>.<p><span>* WPI to be negative for a few more months</span></p>.<p><span>* Inflation seen at 5 pc by fiscal-end</span></p>.<p><span>* Enough liquidity in the system</span></p>.<p><span>* Fiscal deficit remain a challenge</span></p>.<p><span>* Large borrowings can crowd out private investment</span></p>.<p><span>* Need to push financial sector, governance reforms</span></p>.<span>* Money supply growth to remain at over 20 pc</span>