No change in interest rates: RBI

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RBI

Mumbai, Jan 29: Taking in account the global uncertainties the Reserve Bank of India today maintained status quo while announcing the third quarter monetary review here today.

The Apex bank kept uchanged the bank rate at six per cent, repo rate at 7.75 per cent, reverse repo six per cent, Cash Reserve Ratio (CRR) 7.5 per cent. The RBI policy emphasised on price stability and well anchored inflation expections, while ensuring a monetary and interest rate environment conducive to continuation of the growth momentum and orderly condition in financial market. The focus had been in managing the excess capital inflows and voltality in the capital market.

Announcing the third quarter review of the annual policy statement, RBI Governor Dr Y Venugopal Reddy retained the overall real GDP growth rate at 8.5 per cent for the current fiscal. He said the endeavour would be to contain inflation close to five per cent, while conditioning expectations between four to 4.5 per cent for 2007-08.

However, non-food credit had decelerated growth in money supply, while the aggregate deposits of scheduled commercial banks continue to expand well about the indicative projections.

He said liquidity management would assume priority in the conduct of monetary policy through appropriate and timely action.

Dr Reddy said barring the emergence of any adverse and unexpected developments in various sectors of the economy and keeping in view the current assessment of the economy, including the outlook for growth and inflation, the bank would reinforce the emphasis on price stability and well anchored inflation expectations, while ensuring a monetary and interest rate environment conducive to continuation of the growth momentum and orderly conditions in financial markets.

The Apex Bank would also emphasise credit quality as well as credit delivery, in particular, for employment intensive sectors, while pursing financial inclusion.


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