Federal reserve cut down not determining factor in India

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Kolkata, Dec 13 (UNI) Reserve Bank of India Governor Y V Reddy today said the decision by the U S Federal Reserve to slash interest rates was not a determining factor, though relevant to Indian monetary policy.

"RBI has its monetary policy where a number of factors are taken into account, and Fed rate cut is a relevant but not necessarily determining factor in this regard," he told reporters on the sidelines of the RBI central board meeting.

The Fed lowered its benchmark federal funds rate by 25 basis points to 4.25 per cent on Tuesday last, and also cut down the discount rate for direct borrowings by banks, by 4.75 per cent.

At a policy review in October, the RBI raised the proportion of cash banks have to keep with it on deposit leaving interest rates unchanged.

UNI

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