25 Jan 2011 Rbi Credit Policy.Doc

25 Jan 2011 RBI Credit Policy  REPO and reverse REPo ruddiness by 0.25% In line with street expectations.CRR remained unchange at 6% Todays move clearly shows that the RBI has relaunched its attack on pretension given the persistance of fanfareary pressures. Third Quarter study of Monetary Policy 2010-11 [pic] By Dr. D. Subbarao Governor,RBI Introduction : 1.There have been significant changes in the macroeconomic environment since the Second Quarter Review issued on November 2, 2010. Globally, the recovery in the advanced economies appears to be consolidating and expectations of ontogeny during 2011, specially in the US, are generally being revised upwards. However, inflationary tendencies are clearly visible. Though still subdued in the advanced economies, inflationary pressures in emerging market economies (EMEs), which were already strong, have intensified due to sharp increases in food, capacity and commodity prices. 2. The Indian economy has reverted to its pre-crisis return trajectory, with growth in the first half of 2010-11 estimated at 8.9 per cent. Recent data on agricultural output and service sector indicators suggest that the growth momentum continued in the third quarter.

The robustness of growth is also reflected in corpo consider sales, tax revenues and bank credit, but some moderation in the index of industrial drudgery (IIP). 3. Inflation is clearly the dominant concern. Even as the rate itself remains uncomfortably high, the reversal in the direction of inflation is striking. After some moderation between August and November 2010, inflation rose again in December 2010 on the vertebral column of sharp increase in the prices of primary food articles and the recent spurt in global oil prices. Non-food manufacturing inflation has remained sticky, reflecting two buoyant demand conditions and rising costs. 4. Against this backdrop, this statement sets out the carry Banks assessment of the current macroeconomic dapple and... If you want to get a full essay, order it on our website: Orderessay

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