Bank rate, Repo, Reverse repo rates unchanged

Mumbai, Apr 24: With a view to holding down the rising inflation rate close to the desirable 5.0 margin, the Reserve Bank of India (RBI) today kept the bank rate, Repo and Reverse Repo rates unchanged and maintained the cash reserve ratio (CRR) rate of 6.5 per cent, in its annual policy statement released here.

The Central bank has also set a mixture of monetary and fiscal regulations with ''greater emphasis on price stability and well anchored inflation expectations while ensuring a monetary and inflation rates that supports the national growth momentum''.

The RBI, while projecting a Gross Domestic Product (GDP) of 8.5 and an inflation dip up to 5.0 per cent for the 2007-08, said, ''The resolve is to condition policy and perceptions for inflation in the range of 4.0-4.5 per cent over the medium term.'' The Central bank also estimated the M3 expansion to be contained at around 17.0-17.5 per cent by the end of next year whereas the deposits were expected to be increased by around Rs 4,90,000 crore during 2007-08.

This apart, the ceiling interest rate on foreign currency non-resident (bank) deposits (FCNR-B) and non resident (external) rupee account(NR(E)RA) deposits were reduced by 50 basis points each.
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