New Delhi: The Reserve Bank of India Monday shocked markets by keeping the repo rate and cash reserve ratio unchanged, saying high interest rates have a small role in hurting economic growth, which tumbled to a nine-year low in the March quarter. What was even more shocking was the central bank's guidance on how future action will depend on factors mitigating inflationary risks, although it said its policy stance will be influenced by growth-inflation dynamics. Industry bodies were disappointed with the central bank's action. Indian markets and the rupee too fell after enjoying a buoyant rally until last weak after a likelihood of at least 25 basis points cut in the repo rate following a dovish note struck by one the RBI's Deputy Governors earlier this month. Contify brings you the comprehensive coverage:
RBI POLICY: Keeps repo, cash reserve ratio unchanged on inflation worries
New Delhi: The Reserve Bank of India Monday chose to keep the repo rate and cash reserve ratio unchanged, dampening widespread market expectations of policy rate cuts, saying that reduction in policy rates at this point could exacerbate already high inflation rather than bolster economic growth, which fell to a nine-year low in the March quarter.
RBI POLICY: Future interest rate action to depend on events lowering inflationary risks
New Delhi: The Reserve Bank of India (RBI) Monday said that future action on policy rates will depend on factors mitigating inflationary risks and that its policy stance will be guided by growth-inflation dynamics.
RBI POLICY: Raises cap on export credit refinance to 50% from 15% to boost liquidity
New Delhi: The Reserve Bank of India (RBI) Monday announced the hike in the export credit refinance limit for scheduled commercial banks to 50% of the outstanding export credit from 15% now, in a bid to inject further liquidity and encourage banks to bolster credit flow to the export sector.
RBI POLICY: High interest rates have little role in econ slowdown; other factors hurting growth
New Delhi: The Reserve Bank of India Monday said that the role of high interest rates in hurting economic growth is relatively small and instead several other factors have sharply dragged down the growth, which tumbled to a nine-year low in the March quarter.
RBI POLICY: High wholesale, retail inflation point to supply-side constraints
New Delhi: The Reserve Bank of India Monday said that elevated inflation at both wholesale and retail levels, in face of sharp economic slowdown, indicates serious bottlenecks in supply side and expectations of 'sticky inflation', although core inflation has moderated in the past couple of months.
RBI POLICY: Central bank to conduct open market operations whenever needed
New Delhi: The Reserve Bank of India (RBI) Monday said it will continue to conduct open market operations (OMOs) to address liquidity crunch whenever the situation demands.
RBI POLICY: High inflation may have weighed on RBI to hold policy rates steady, says Mukherjee
New Delhi: India's Finance Minister Pranab Mukherjee Monday said that high inflation numbers may have prompted the Reserve Bank of India to keep key policy rates unchanged in its mid-quarterly monetary policy review.
RBI POLICY: Auto industry disappointed over central bank's decision to hold interest rates steady
New Delhi: Indian automakers Monday expressed disappointment over the Reserve Bank of India's (RBI) decision to leave the policy rates unchanged, saying that costlier credit and already high fuel costs will continue to hurt the interest rate sensitive industry.
RBI POLICY: Move to hike export credit refinance limit to help boost liquidity, says Tata Steel CFO
New Delhi: The RBI's decision to increase the export credit refinance limit to 50% of the outstanding rupee export credit for banks will help infuse much-needed liquidity and benefit the small and medium enterprises (SMEs), Tata Steel Group Chief Financial Officer Koushik Chatterjee said Monday.