RBI’s third quarter review of monetary policy – status quo

RBI has kept all the rates unchanged in its monetary policy

  • The repo rate under the LAF has been kept unchanged at 5.5 per cent.
  • The reverse repo rate under the LAF has been kept unchanged at 4.0 per cent.
  • The cash reserve ratio (CRR) of scheduled banks has been kept unchanged at 5.0 per cent of NDTL

The market was pretty much divided on the rate cuts, with half saying yes rate cuts and half saying no to rate cuts.

Anyways, what is actually better is this time’s statement. It is just about 35 pages which is a relief from the 60-70 pages statement.

However, the macroeconomic and monetary policy report released yesterday is still about 114 pages, similar to previous reports. In a way it is good as we hardly get any report from official sources on Indian economy.  But it also means loads of reading.

Update:

1. As I complain, RBI has released a short statement (all of 5 pages)  summarising its monetary policy stance.

2. I have analysed the credit market situation in India

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One Response to “RBI’s third quarter review of monetary policy – status quo”

  1. Fernando Says:

    In the wake to the financial crisis the federal banks counties to vary interest rates to keep the inflation down. Check out more on the Monetary policy here which could make difference in your Business.

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