RBI untouched repo rate and CRR, cuts SLR by 50 bpsBusiness News

February 03, 2015 13:15
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Reserve Bank of India, today stick to status-quo policy method in view of volatility in external market conditions and no further changes in disinflationary trend in India. They felt that disinflation level is at constant since January 15th sudden rate cut.

Central Bank preferred the voice of economists and market analysts for steady moment till the budget announcement by Finance Minister Arun Jaitley on February 28th. However RBI paved way for maximum lending by reducing 50 basis points of SLR from 22% to 21.5%.  

"Given that there have been no substantial new developments on the disinflationary process or on the fiscal outlook since January 15, it is appropriate for the Reserve Bank to await them and maintain the current interest stance," the RBI said.

RBI positively estimated the current account deficit (CAD) for 2014- 15 at 1.3 per cent of the GDP, significantly lower than the earlier projection.

Repo rate is steady at 7.75 per cent and CRR at 4% after easing the rates just three weeks ago. The first bi-monthly monetary policy review for fiscal year 2015-16 is scheduled on Tuesday, April 7, 2015. There we can observe the changes according to the pattern of market conditions and financial health.


-Kannamsai

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