Following are the highlights of the Reserve Bank's mid-year review of monetary policy:
* Short-term lending (repo) rate up by 25 bps to 8.5 pc
* Savings bank deposit rate freed; depositors to benefit
* To remove prepayment penalty on home loans
* Lowers GDP forecast to 7.6 pc for FY 2012 from 8 pc
* Says inflation to ease from December; gives a projection
of 7 per cent by March-end
* Food inflation likely to remain under pressure
* Hints at pause in policy; may not hike rate further
* Short term borrowing rate (reverse-repo) kept at 7.5 pc
* Retains cash reserve ratio (CRR) at 6 pc
* Says global situation poses downside risk to GDP
* Weak rupee offsetting benefits of easing commodity rates
* Warns of private investment being crowded out by higher
government borrowing
* Next monetary policy review on 16th December
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