Little expectations from RBI on policy rate cut on Oct 30: Survey
By Neelima Shankar
Oct 26, 2012
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According to the survey conducted by Royal Bank of Scotland (RBS), a majority of India Inc have bleak expectations from Reserve Bank of India on any further reduction in the policy rate on the second quarter monetary policy review on October 30th.

The survey was conducted among 108 espondents from the bank's corporate clients and other financial institutions.

But, RBS in a pre-policy client survey observed that there might be further reduction in the interest rates in the long term around March.

It is highly expected that Governor of Reserve Bank of India, Mr. Subbarao leave all the rates unchanged as the inflation is very high. The inflation stood at 7.81% in August.

Many Economists and Analysts are saying that it is very early to expect any changes in the interest rates regime despite the recent reform measures.

Cash Reserve Ratio (CRR) is currently at 4.50% and repo rate is 8%. According to the survey, 50.9% of the respondents don't expect any changes in the CRR, and around 49% expects around 25-50 bps cut in the policy review meeting.


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