Headlines India
Latest Online India News Update Volume-VIII India News
Home » Business News » RBI
Monday, December 17, 2012 (20:41:29)
Tags : India Business News, Reserve Bank of India, Cash Reserve Ratio, Inflation, Wholesale Price Index

RBI likely to keep interest rates on hold

 Email Story  Write to the editor  Print Story
Mumbai, Dec 17: The Reserve Bank of India (RBI) is likely to keep key interest rates unchanged in the policy review Tuesday as inflation remains at elevated level.

However, the central bank is likely to cut the cash reserve ratio (CRR) for the third time in a row.

In the second quarter review of monetary policy for 2012-13 announced Oct 30, the RBI lowered the CRR by 0.25 percent, but kept repo and reverse repo rates, which determine lending and borrowing rates by the commercial banks, unchanged.

The wholesale price index based inflation declined to a 10-month low of 7.24 percent in November as against 7.45 percent in the previous month, according to the government data released last week.

Despite the recent decline, inflation remained much above the central bank's comfort level of 4-5 percent. (IANS)

Post your comment
Name
Email
Comment
Reader Comments