Commodity Online
NEW DELHI : Finance minister P Chidambaram on Friday said RBI’s decision to maintain key rates was not final.

Speaking to reporters here the FM said, “It is not the last word. RBI is flexible and will take decision depending on the market situation”.

"RBI endorses our assessment that our financial system is strong and healthy and our economic fundamentals are strong," Chidambaram added.

The Finance Minister said that the most important thing is to manage India's financial stability and that the RBI's policy review was on expected lines.

Assuring investors, he said that the government will return to higher growth trajectory once the markets calm down and it was necessary to be calm and confident to tide over the global financial crisis.

Following are the highlights of the mid-term review of the RBI's monetary policy for 2008-09:

* CRR kept unchanged at 6.5 per cent.

* Repo, reverse repo rates kept unchanged at 8 per cent and 6 Per cent respectively

* Bank rates unchanged at 6 per cent

* GDP projections lowered to 7.5-8 per cent for FY 09

* Inflation to be brought down to 7 per cent by March 2009

* RBI aims to bring inflation down to 5 per cent at the Earliest

* Medium term inflation target 3 per cent

* Double-digit inflation still a matter of concern

* Enough liquidity in the banking system after recent infusion