<h1>RBI's 2012-13 Q2 Review: Balancing Growth and Inflation Amid Global and Domestic Economic Challenges, Retains Repo Rate.</h1> The Second Quarter Review of Monetary Policy for 2012-13 highlights global economic challenges, with advanced economies facing fiscal consolidation and growth stimulus conflicts. Liquidity infusions by central banks have stabilized markets but not resolved structural issues. In India, economic growth is sluggish due to stalled investment, weakening consumption, and declining exports, despite recent policy initiatives to improve sentiment. Inflation remains high, driven by supply constraints and rupee depreciation, necessitating a focus on managing inflation expectations. The Reserve Bank of India has reduced the cash reserve ratio to inject liquidity but retained the repo rate to balance growth and inflation. The review includes developmental and regulatory policy measures to enhance financial stability and inclusion.