Highlights of RBI's mid-quarter policy review

The Reserve Bank of India has kept the key short term lending rate (repo rate) unchanged at 7.25%.

Following are the highlights of the mid-quarter monetary policy review:

* Cash reserve ratio too unchanged at 4 per cent

* Rupee fall, external sector risks and elevated food inflation areas of concern

* Continuing weakness in manufacturing needs to be urgently reversed

* RBI asks govt to create conducive environment for private investment, improve project clearances to promote growth

* Durable receding of inflation will open space for monetary policy action

* Reducing CAD is a challenge; RBI pitches for stable foreign inflows to finance it

* Steps to curb gold imports, easing commodity prices to lower CAD in 2013-14

* Balance of Payments, inflation and growth rate to determine future monetary stance

* Need to be vigilant about global uncertainty and its impact on capital flows

* RBI ready to use all available instruments to deal with any adverse development in   external sector

* Positive rating action should have favourable impact on investor confidence

* First quarter review of policy on July 30.