RBI has announced cut in short term lending rate by 0.5 per cent to 8 percent. The apex bank which announced its new credit policy in Mumbai today, has reduced bank rate by 0.5 percet to 9 percent . The bank estimtes the loan growth to be at 17 % for 2012-2013.It has retained cash reserve ratio at 4.75 per cent. The bank expects the inflation in this fiscal to be at 6.5 % and projected a growth rate of 7.3%.