18 april 2006

rbi announces monetary policy for 2006-07; interest rates unchanged
mumbai: interest rates remain unchanged in the annual monetary policy for 2006-07, announced by dr y venugopal reddy, governor, reserve bank of india. the bank rate, reverse repo rate, repo rate and cash reserve ratio (crr) also remain unchanged in the slack season credit policy.

reddy said that inflation would be contained within the 5 and 5.5 per cent range during 2006-07 and projected economic growth at 7.5-8 per cent for 2006-07.

money supply is expected to expand by 15 per cent during the current financial year and there would be "no liquidity constraints for legitimate credit requirements consistent with price and financial stability," added reddy.

the annual monetary policy comprises the annual statement on monetary policy for the year 2006-07 (part i); and the annual statement on developmental and regulatory policies for the year 2006-07 (part ii).