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Rbi Pollicy
Nov 03, 2010
Second Quarter Review of Monetary Policy 2010-11
Statement by Dr. D. Subbarao, Governor, Reserve Bank of India on the Second Quarter
Review of Monetary Policy for the Year 2010-11
Press Release
Statement by Dr. D. Subbarao, Governor, Reserve Bank of India on the First Quarter Review
of Monetary Policy for the Year 2010-11
Press Release
Full Document
Apr 21, 2010
Annual Policy Statement for the Year 2010-11
Edited Transcript of Post Policy Teleconference with Researchers & Analysts (Questions
received on email added)
Audio recording of Governor’s Post-Policy teleconference with Researchers and Analysts
held on April 21, 2010
RBI Governor announces Annual Policy Statement for the year 2010-11
Press Release
Full Document
MUMBAI: The Reserve Bank hinted at a marginal hike in key policy rates when it reviews its monetary
stance tomorrow, saying inflation was still above the comfort zone and that there was uptick in credit to
non-food sectors.
"Elevated inflation remains a challenge for monetary policy," RBI said today in its report on
macroeconomic and monetary developments, ahead of tomorrow's second quarter review of FY'11.
Overall inflation was 8.62 per cent in September, although the government expects it to slip to 6 per cent
by December.
"Food inflation continues to remain high despite a good monsoon, as price pressures have amplified for
certain non-cereal items like milk, eggs, fish and meat whose output is less responsive to monsoon," the
central bank said.
Food inflation was 13.75 per cent for the week ended October 16. It has remained in double digit for the
past three months.
RBI also noted that credit to non-food sectors was healthy, although loan disbursals to the agriculture
sector had declined.
The bank said its objective was to maintain growth and moderate inflation -- a hint that a nominal hike
may be on the cards tomorrow.
The RBI's professional forecasters' survey pegged GDP growth at 8.5 per cent, which is a tad higher than
the 8.4 per cent it had forecast at the last review.
RBI Governor D Subbarao will announce the busy season credit policy tomorrow, and he is widely
expected to go for another hike in the short-term lending (repo) and borrowing (reverse repo) to rein in
inflation.
The central bank has raised the key rates five times so far this year.
While there are lots of factors to propel economic growth, the RBI indicated a few downside risks such as
weak external demand, pressure from capital inflows, some moderation in capacity utilization and
persistent inflation in food items needed to be kept in mind.
"The uncertain global outlook, and the dominance of supply rigidities in certain sectors that impart rigidity
to the inflation path, pose greater challenges for monetary policy in its objective of anchoring inflationary
expectations without hurting growth," the report said.
"Going forward, the growth-inflation outlook will dominate the policy response," the apex bank.