MUMBAI, June 18: The Reserve Bank of India (RBI) today kept the
key rates unchanged with the Repo rate aand Reverse Reop ratw maintained at 8 per cent and 7 per cent respectively.
The Cash Reserve Ratio for banks was also unchanged at 4.75 per
cent by the RBI, in its mid-Quarterly Monrtary policy review.
Further reduction in the policy interest rate at this juncture,
rather than supporting growth, could exacerbate inflationary pressures, Dr D Subbarao, RBI Governor said.
India’s economic growth slipped to 5.3 per cent in the March quarter, weakest in nine years, but May headline inflation rose to
7.55 per cent, as per data released last week.
Since the Reserve Bank’s Annual Policy statement in April, global
macroeconomic and financial conditions have deteriorated.
At the same time, the domestic macroeconomic situation too raises
several deepening concerns.
(UNI)
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