The Reserve Bank of India (RBI) on Tuesday kept all indicative policy rates unchanged, while raising the growth projection for gross domestic product (GDP) for 2009-10 to 6 per cent with an upward bias and inflation to 5 per cent at the end of March 2010 from 4 per cent. “We have adjusted the policy rates several times in the last ten months. Currently, the repo rate is at 4.75 per cent, the
reverse repo at 3.25 per cent, and the CRR (cash reserve ratio) at 5 per cent. Consistent with our current assessment of macroeconomic and monetary conditions, we have decided to keep all these rates unchanged,” said RBI Governor D. Subbarao here while reviewing the first quarter of its Annual Policy 2009-10.As liquidity remains ample, said Dr. Subbarao, the competitive pressure on banks to reduce lending rates had increased. Consequently, the transmission of policy rate changes to bank lending rates had improved since the last Annual Policy Statement in April 2009.“As the short-term deposits contracted earlier at high rates mature and get repriced, it opens up room for banks to further reduce their lending rates,” said Dr. Subbarao after meeting bankers on Tuesday. Bankers generally welcomed the Reserve Bank’s policy stance, the Governor said.
reverse repo at 3.25 per cent, and the CRR (cash reserve ratio) at 5 per cent. Consistent with our current assessment of macroeconomic and monetary conditions, we have decided to keep all these rates unchanged,” said RBI Governor D. Subbarao here while reviewing the first quarter of its Annual Policy 2009-10.As liquidity remains ample, said Dr. Subbarao, the competitive pressure on banks to reduce lending rates had increased. Consequently, the transmission of policy rate changes to bank lending rates had improved since the last Annual Policy Statement in April 2009.“As the short-term deposits contracted earlier at high rates mature and get repriced, it opens up room for banks to further reduce their lending rates,” said Dr. Subbarao after meeting bankers on Tuesday. Bankers generally welcomed the Reserve Bank’s policy stance, the Governor said.For Further Details Visit At:www.hindu.com/2009/07/29/stories/2009072956731600.htm
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