Highlights of RBI's monetary policy

Following are the highlights of RBI's fifth bi-monthly monetary policy statement for 2015-16.

*   Benchmark policy rate unchanged at 6.75 per cent

 *  Cash Reserve Ratio unchanged at 4 per cent

 *   GDP to grow at 7.4 per cent in 2015-16; mild downside bias

 *   Economy in early stages of recovery, weakness persist

 *   Farm sector subdued; rabi, kharif prospect hit by monsoon

 *   Retail inflation at 6 per cent by January, 5 per cent by March 2017

 *   Inflation uptick for 2 months warrants vigilance

 *   Open to accommodative monetary policy, keeping inflation under control

 *   Implementation of Pay Panel recommendations to be factored in for future policy deliberation

 *   Banks transmitted only 0.60 per cent of 1.25 per cent repo rate cut benefits to borrowers

 *   To shortly finalise base rate computation based on marginal cost of funds

 *   Clean up of bank balance sheets will create room for fresh lending

 *   Linking of small savings rate with market interest rates  on anvil, to help in monetary transmission

 *   Early signs of recovery in pharma, electronic exports

 *   Sixth Bi-monthly Monetary Policy on February 2.