MAIN HIGHLIGHTS
* Keeps repo rate unchanged at 8%
* Keeps CRR unchanged at 4% *
*To continue to provide liquidity via term repos
* Continue with overnight repos at 0.25% of bank-wise NDTL
* Continue with 7-, 14-day repos of up to 0.75% NDTL
* Reverse repo remains unchanged at 7%
* MSF, bank rate remains unch at 9%
* To continue with daily one day repo, reverse repos
* Any change in current monetary policy stance "premature"
* Monetary policy stance can change early next year
* Policy stance can change outside policy review cycle
* Policy stance change at current juncture premature
* Monetary conditions, rather than long-term yld view, key to OMO
* RBI to detail 6th bi-monthly monetary policy statement Feb 3
* In talks with govt on new monetary policy framework
* Stronger the information, sooner the policy accommodation
* Conducted OMOs based on assessment of monetary conditions
* Conducted OMO sales worth 401 bln rupees so far Oct-Dec
INFLATION
* RBI revises central forecast for CPI inflation to 6% for Mar 2015
* Stance change can be outside review cycle
* Nov inflation expected to show further softening
* Inflation is expected to retain some momentum over 12 mos
* Risks to Jan 2016 6% CPI aim evenly balanced
* Expect Dec CPI inflation to rise above current level
* Expect Dec CPI inflation to rise above current level
* "Durability of upturn" in inflation key uncertainty
* March 2015 CPI inflation forecast cut to 6%
* Change in policy stance likely next year if inflation eases
* Headline inflation has been receding steadily
* Favourable base effect will likely dissipate after Nov
* Dec inflation may well rise above current levels
* Uncertainty about evolution of base effect in inflation
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