RBI Monetary Policy

On the basis of the current macroeconomic assessment, it has been decided to: * keep the cash reserve ratio (CRR) unchanged at 6 per cent; and * keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.5 per cent. Full Article

Home, auto and corporate loans are likely to cost more, with the Reserve Bank raising key policy rates by half a percentage point, bankers said today. I think banks do not have any other option but to increase rates. It could be 25 basis points or 50 basis points, depending on individual banks, IDBI Bank Executive Director R K Bansal told PTI. Full Article

Concerned about high inflation that in March overshot its 8 per cent target, the Reserve Bank has said it would address the issue in its monetary policy review, scheduled for May 3. "RBI will evaluate the underlying inflationary pressures on the monetary policy...Inflation is a concern for us. The underlying inflationary pressure is because of high non-food manufacturing prices," RBI deputy governor Shyamala Gopinath said on the sidelines of a workshop on FEMA here yeste.. Full Article

"This morning, the Reserve Bank released the First Quarter Review of Monetary Policy for 2010-11 at a meeting of the chief executives of major banks. The important decisions contained in the review were to raise the repo rate from 5.5 per cent to 5.75 per cent and the reverse repo rate from 4 per cent to 4.50 per cent. This asymmetric raise in rates narrows the LAF corridor from 150 basis points to 125 basis points. Full Article