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The Reserve Bank of India (RBI) on Tuesday kept all key policy rates and reserve ratios unchanged in a monetary policy review , but said its focus now shifts towards spurring growth that has taken a hit in recent months. “In view of inflation pressures ebbing, monetary policy has to increasingly shift focus and respond to the threats to growth from this point onward,” the Central bank said in a statement on its mid-quarter review of the monetary policy.

“Overall, recent inflation patterns and projections provide a basis for reinforcing our October guidance about policy easing in the fourth quarter. However, risks to inflation remain and accordingly, even as the policy emphasis shifts towards growth, the policy stance will remain sensitive to these risks.”

Accordingly, the bank rate remains unchanged at 9 per cent, the repurchase (repo) rate at 8 per cent, reverse repo rate at 7 per cent, the cash reserve ratio at 4.25 per cent and statutory liquidity ratio at 23 per cent.

In the second quarter review of monetary policy on Oct 30, the RBI had lowered the CRR by 0.25 per cent, but had kept unchanged the repo and reverse repo rates, which determine lending and borrowing rates by commercial banks.

As per latest data released last week, the annual rate of inflation based on wholesale price index declined to a 10—month low of 7.24 per cent in November against 7.45 per cent in the previous month, according to the government data released last week.

But the growth in the country’s gross domestic product in the second quarter of this fiscal at 5.3 per cent was marginally lower than the 5.5 per cent logged during the first quarter — which has been a matter of concern for all stakeholders.

Highlights of RBI’s Mid-Quarter Monetary Policy Review

1. RBI keeps interest rate (repo rate) and cash reserve ratio (CRR) unchanged.

2. RBI says global economy has shown some signs of stabilisation although situation remains fragile.

3. At home, there are some incipient signs of pick-up though growth remains significantly below its recent trend.

4. Recent policy steps by the Govt and more reforms should help boost business sentiment, improve investment climate.

5. Inflationary pressure moderating but high food and commodity prices continue to remain a risk.

6. RBI says it is closely monitoring the evolving growth-inflation dynamics.

7. RBI to update formal assessment of its growth and inflation projections for 2012-13 in January.

8. With inflation pressures ebbing, monetary policy has to shift focus and respond to threats to growth from now on, says RBI.