29 Apr 2008 | 18:08
RBI concurs with IER April 2008 issue on India's GDP growth estimate
RBI has presented the Annual Policy Statement for the Year 2008-09 on 29th April 2008.
While keeping all interest rates unchanged, RBI has hiked CRR by 25 basis points to 8.25% with effect from the fortnight begining 24th May 2008. This hike is in addition to 50 basis points rise to 8.0% announced on 17th April 2008, which was supposed to be effective in two tranches of 25 basis points each on 26th April 2008 and 10th May 2008. Thus between 25th April 2009 and 24th May 2008, the CRR would have been hiked by whopping 75 basis points from 7.5% to 8.25%.
In the policy statement, amongst others, RBI has said that GDP growth projection for 2008-09 (will be) in the range of 8.0 - 8.5 per cent. Interestingly, the projections coincide with the projections of April 2008 issue of India Economy Review.
The April 2008 issue of India Economy Review said, ... External shocks - spike in crude oil / other agri commodities or continuous slowdown in global economy or select advanced economies - cannot be overlooked. Fortunately, as the share of domestic consumption and domestic investments in the total is high, India is relatively insulated. Nevertheless, the country is not fully de-coupled from the global market. Hence, there could be deceleration in the pace of GDP growth to around 8-8.5% in 2008-09.
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