Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

Rbi ppt

•Download as PPTX, PDF•
•
SRI GANESH
SRI GANESH

The Reserve Bank of India (RBI) made several changes to monetary policy measures in 2011-12, including hiking repo and reverse repo rates, adjusting cash reserve and statutory liquidity ratios, and revising GDP growth and inflation projections. Specifically, the RBI hiked repo rate by 0.5% to 7.25% and reverse repo by 0.5% to 6.25%, kept CRR at 6% and SLR at 24%, and projected 2011-12 GDP growth at around 8% and inflation at 6% by March 2012. Over subsequent policy reviews, the RBI further adjusted these rates and ratios in response to economic conditions, and revised GDP and inflation projections downward.

1 of 14
MONETARY POLICY 2011-12  Repo rate hiked by 50 bps from 6.75% to 7.25%  Reverse Repo rate hiked by 50 bps from 5.75% to 6.25% (dependent  variable on the Repo rate – 100 bps below the Repo rate)  CRR kept unchanged at 6%  SLR kept unchanged at 24%  GDP growth projection for FY 2011-12 placed at around 8% (in the range of 7.4% and 8.5%)
CONT-  FY 2011-12 March end WPI inflation baseline projection placed at 6% with an upward bias  M3 growth projected at 16%, deposit growth at 17% and non-food credit growth at 19%  Bank rate kept unchanged at 6%.  MSF introduced at 1% above the Repo rate (8.25%)  LAF corridor width set at 200 bps (with base at reverse repo – 6.25% & ceiling at MSF – 8.25%)  MP 2011-12.docx
FIRST QUARTERLY REVIEW Increase / (Decrease) At present since March 2010 Repo Rate .5% 8%. Reverse Repo Rate .5% 7% Cash Reserve Ratio Unchanged 6%. Statutory Liquidity Unchanged 24% Ratio Bank Rate Unchanged 6%
KEY FEATURES  GDP growth projection for FY 2011-12 kept unchanged at around 8%  Inflation projection for March end FY 2011-12 revised upwards to 7% from 6%
SECOND QUARTERLY REVIEW Increase / (Decrease) At present Repo Rate .25% 8.5% Reverse Repo Rate .25%. 7.5% Cash Reserve Ratio Unchanged 6% Statutory Liquidity Unchanged 24% Ratio Bank Rate Unchanged 6%
KEY FEATURES  RBI lowered the growth forecast for 2011-12 from 8% to 7.6% (in line with our expectations)  Inflation forecast is kept at 7% by Mar-12 end.  Money supply and Credit growth maintained at 15.5% and 18% respectively  Depreciation of the rupee has emerged as another risk for inflation.  Indian economy continued to face suppressed inflation as prices are administered in petroleum sector.
Rbi ppt
Increase / (Decrease) At present Repo Rate Unchanged 8.50% Reverse Repo Unchanged 7.50% Rate Cash Reserve .50% 5.50% Ratio Statutory Unchanged 24.00% Liquidity Ratio Bank Rate Unchanged 6.00%
KEY FEATURES  The drop in November 2011 WPI inflation to 9.11%, mainly due to softening in food inflation (4.35% for the week ended December 3, 2011)  GDP growth rate has fallen to 6.9% from 7.7%(expected in Q2)  Due to sharp moderation in industrial growth to -5.1%  The fiscal deficit at 74.4% of budgeted 2011-12 was significantly higher than 42.6% in 2010-11
CONT-  FDs (Fixed Deposits) are offering interest in the range of 7.25% - 9.40% p.a.  Projection of GDP growth for 2011-12 is revised downwards from 7.6% to 7%.  In reducing the CRR,INR 320 bn of primary liquidity will be injected into the banking system
INFLATION RATE 2011
RBI projections in three reviews in 2011-12 Table 1: RBI Projections in Monetary Reviews (in %) May-11 Jul 11 Oct-11 Growth (2011-12) 8 8 7.6 Inflation (Mar-12) 6 7 7 M3 (Mar-12) 16 15.5 15.5 Deposit (Mar-12) 17 - - Credit (Mar-12) 19 18 18
or 2 0 1 1. d oc x
PRESENTATION BY

More Related Content

Rbi ppt

  • 1. MONETARY POLICY 2011-12  Repo rate hiked by 50 bps from 6.75% to 7.25%  Reverse Repo rate hiked by 50 bps from 5.75% to 6.25% (dependent  variable on the Repo rate – 100 bps below the Repo rate)  CRR kept unchanged at 6%  SLR kept unchanged at 24%  GDP growth projection for FY 2011-12 placed at around 8% (in the range of 7.4% and 8.5%)
  • 2. CONT-  FY 2011-12 March end WPI inflation baseline projection placed at 6% with an upward bias  M3 growth projected at 16%, deposit growth at 17% and non-food credit growth at 19%  Bank rate kept unchanged at 6%.  MSF introduced at 1% above the Repo rate (8.25%)  LAF corridor width set at 200 bps (with base at reverse repo – 6.25% & ceiling at MSF – 8.25%)  MP 2011-12.docx
  • 3. FIRST QUARTERLY REVIEW Increase / (Decrease) At present since March 2010 Repo Rate .5% 8%. Reverse Repo Rate .5% 7% Cash Reserve Ratio Unchanged 6%. Statutory Liquidity Unchanged 24% Ratio Bank Rate Unchanged 6%
  • 4. KEY FEATURES  GDP growth projection for FY 2011-12 kept unchanged at around 8%  Inflation projection for March end FY 2011-12 revised upwards to 7% from 6%
  • 5. SECOND QUARTERLY REVIEW Increase / (Decrease) At present Repo Rate .25% 8.5% Reverse Repo Rate .25%. 7.5% Cash Reserve Ratio Unchanged 6% Statutory Liquidity Unchanged 24% Ratio Bank Rate Unchanged 6%
  • 6. KEY FEATURES  RBI lowered the growth forecast for 2011-12 from 8% to 7.6% (in line with our expectations)  Inflation forecast is kept at 7% by Mar-12 end.  Money supply and Credit growth maintained at 15.5% and 18% respectively  Depreciation of the rupee has emerged as another risk for inflation.  Indian economy continued to face suppressed inflation as prices are administered in petroleum sector.
  • 8. Increase / (Decrease) At present Repo Rate Unchanged 8.50% Reverse Repo Unchanged 7.50% Rate Cash Reserve .50% 5.50% Ratio Statutory Unchanged 24.00% Liquidity Ratio Bank Rate Unchanged 6.00%
  • 9. KEY FEATURES  The drop in November 2011 WPI inflation to 9.11%, mainly due to softening in food inflation (4.35% for the week ended December 3, 2011)  GDP growth rate has fallen to 6.9% from 7.7%(expected in Q2)  Due to sharp moderation in industrial growth to -5.1%  The fiscal deficit at 74.4% of budgeted 2011-12 was significantly higher than 42.6% in 2010-11
  • 10. CONT-  FDs (Fixed Deposits) are offering interest in the range of 7.25% - 9.40% p.a.  Projection of GDP growth for 2011-12 is revised downwards from 7.6% to 7%.  In reducing the CRR,INR 320 bn of primary liquidity will be injected into the banking system
  • 12. RBI projections in three reviews in 2011-12 Table 1: RBI Projections in Monetary Reviews (in %) May-11 Jul 11 Oct-11 Growth (2011-12) 8 8 7.6 Inflation (Mar-12) 6 7 7 M3 (Mar-12) 16 15.5 15.5 Deposit (Mar-12) 17 - - Credit (Mar-12) 19 18 18