The key economic, monetary and financial developments were analyzed by the Central board of Reserve Bank of India in a meeting held at Ahmedabad on Thursday, February 12th. Besides, measures taken by RBI sine mid-December to overcome the financial instability were also reviewed by the board.
The board usually holds its post-budget meeting in the country's capital, New Delhi where as the other meetings are held at the state capitals by rotation to each state.
The current meeting was chaired by RBI Governor D Subbarao and the others attending the meeting were Deputy Governors Shyamala Gopinath and Usha Thorat and Secretary of Economic Affairs, Ashok Chawla.
The meeting was held with the main purpose of providing the direction on its affairs, stated an official release of RBI.
During a quarterly review of its monetary policy [link] in January, RBI has kept the key policy unchanged but gave signals to banks to decline down the interest rates. Moreover with inflation coming down to one-year low level of 4.39%, [link] the apex bank is expected to slash the interest rate further.
The banking regulator will also continue to keep a watch over the global and domestic financial market movements and thereby take necessary moves.
At the same time, RBI is trying to minimize the pressure on various ailing sectors of the economy by helping them to maintain credit inflow. The sectors where the bank will focus include housing, export and small and medium enterprises (SMEs).
In the wake of ongoing global financial crisis and deepening recession, RBI said that the main objective is to provide adequate liquidity in the system.