Reserve Bank of India has decided to keep all the key rates unchanged in its first-quarter review of monetary policy 2012 – 2013. The cash reserve ratio (CRR) has been kept unchanged at 4.75 per cent while the policy repo rate has been retained at 8 per cent. Consequently, the reverse repo rate will remain unchanged at 7 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9 per cent. The The Statutary Liquidity Ratio (SLR) has been cut to 23 per cent from 24 per cent.
Speaking in Mumbai, Governor of RBI, D. Subbarao said that GDP growth forecast has been reduced to 6.5 per cent from 7.2 per cent as earlier projected. Inflation continues to be high and the inflation forecast has been raised to 7.3 per cent from 6.5 per cent as earlier projected. He said that the primary focus of RBI's monetary policy remains inflation management.