Thursday, April 28 2005 15:26 Hrs (IST) - World Time -

Mumbai: Following are the highlights of the RBI Annual Statement on Monetary Policy for 2005-06.

• GDP growth projected at around seven per cent.
• Inflation rate in a range of 5-5.0 per cent and (Money Supply) M3 at 14.5 per cent.
• Bank rate kept unchanged at six per cent.
• Reverse Repo Rate increased by 0.25 per cent to five per cent.
• Cash Reserve Ratio (CRR) kept unchanged at five per cent.
• GDP growth for 2004-05 placed at 6.9 per cent.
• Inflation rate stood at five per cent as at end-March.
• Status quo on the administered interest rates on savings deposit accounts, NRI deposits, small loans upto Rs two lakh and export credit.
• Money Supply (M3) increased by 12.8 per cent.
• RBI's foreign currency assets (FCA) rose by Rs 1,15,044 crore. The expansionary impact of (FCA) was neutralised to a large extent by substantial recourse to the MSS in conjunction with reverse repo operations under LAF.
• Non-food credit grew by 26.5 per cent. Total inflow of funds from scheduled banks rose by 23.6 per cent exceeding the growth of 19 per cent anticipated in October 2004.
• Combined market borrowings of the centre and states were lower.
• During 2004-05, financial markets remained generally stable. While interest rates in money and Government securities markets rose intra-year, they stabilised in the later part of the year, albeit at higher levels.
• While the share of sub-PLR lending rose, lending rates remaining stable.