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Following are the highlights of the third bi-monthly monetary policy statement by the RBI:
* Key policy rate (repo) kept unchanged at 7.2 per cent;
* Cash reserve ratio (CRR) unchanged at 4 per cent;
* Economic recovery is still work in progress;
* After strong rainfall in June, July has been below par, but overall monsoon is near normal;
* Most worrisome is sustained hardening of inflation except food and fuel;
* Signs that consumption demand, especially in urban areas, is picking up;
* Weak global demand conditions restrained exports;
* Banks have passed on an average 0.3 per cent interest rate cut as against RBI’s 0.75 per cent rate cut since January;
* New investment demand emanating from private sector and government remains subdued;
* The RBI retains growth target at 7.6 per cent for 2015—16;
* Capital infusion into PSBs will help loan growth and transmission;
* Fourth bi-monthly monetary policy to be announced on September 29.
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