Highlights of First Quarter Review Of Annual Monetary Policy 2006-07 ( 25th July, 2006 )
Reverse Repo and Repo Rate increased by 25 basis points.
The Bank Rate has been kept unchanged at 6%.
CRR remains unchanged at 5%.
GDP growth in 2006-07, left unchanged at 7.5-8.0%.
Containing inflation within 5.0-5.5% for 2006-07 warrants appropriate priority.
Money Supply (M3) growth target remains unchanged at 15%.
GDP growth of agriculture assumed at 3%.
Pass through of global oil to be higher than expected.
Fuel prices constitute a major risk to headline inflation.
January-March GDP growth at 9.3% higher than 8.6% a year ago.
Retail Lending increased by 74% YoY.
Lending by banks to industry is increased by 26% YoY.
Home loan growth is increased by 115.5% YoY.
Loan to commercial real estate increased by 101.3%.
Bank Lending to agriculture increased by 35% YoY.
April-May industrial production recorded a growth of 9.8%.
The buoyancy in manufacturing, services sector activities and the positive business confidence indicate that growth momentum is likely to be maintained in 2006-07.
The cumulative rainfall during June 1 to July 12, 2006 was recorded 10% below normal.
April-May overall growth of infrastructure industries at 5.9% as compared to 7.1% a year ago.
April-May Central Government expenditure higher on account of increase in interest payments, subsidies, grants to States.
Monetary and liquidity conditions remained comfortable during the first quarter of 2006-07, despite sustained growth of bank credit.
WPI inflation was 4.7% on July 8, 2006 as compared with 4.5% a year ago.
Money supply (M3) expanded by 18.8% on a YoY basis as on July 7, 2006 as against 13.8% a year ago.
Scheduled commercial banks' (SCB) non-food credit registered a growth of 32.9% as on July 7, 2006 as against 31% a year ago.
YoY aggregate deposits increased by 20.9% as compare to 14.9% a year ago. Bank deposits has increased by Rs. 66,268 crores till July 7, 2006 as compare to Rs. 20,386 crores for the same period.
In the credit market, deposit and lending rates edged up during the quarter ended June 2006.
India’s balance of payments position remained comfortable during 2005-06; the current account deficit remained modest at 1.3% of GDP.
April-June India's merchandise exports increased by 16.9% as compared to 35.4% a year ago.
April-June India's merchandise imports increased by 17.7% as compared to 45.4% a year ago.
April-June Imports of petroleum, oil and lubricants (POL) increased by 39% due to a sharp increase in international crude oil prices.
April-June non-oil imports registered a growth of 9.6% as compared with 51.7% a year ago.
International crude prices remain a potent threat to overall price stability.
India's foreign exchange reserves were at USD 162.7 billion as on July 14, 2006, registering an increase of USD 11 billion over end-March 2006.
