RBI to leave key rates unchanged in Mid-quarter review
By Neelima Shankar
Dec 19, 2012
Print    Email    RSS   

The Reserve Bank of India has left all its key rates unchanged in its Mid-quarter review of Monetary Policy and the reason behind it the higher inflation which could further soar in the next two months.

However, Reserve Bank of India gave hopes of cut in key interest rates in the fourth quarter (January- March) to support growth.

Although inflation appears to be moderating, the central bank feels that the rise in price of food and commodity prices remains a contingent risk.

Hence, RBI left the repo rate unchanged at 8 per cent and cash reserve ratio is held steady at 4.25 per cent of the deposits.

The Finance Minister said: "While headline inflation has moderated to 7.5 per cent, inflation measured by the consumer price index remains sticky at 9.9 per cent. There is no reason at all to be complacent."

Mr. M Narendra, Chairman and Managing Director of Indian Overseas Bank said that his bank will not be able to cut interest rates on retail deposits.

Adding to it, Mr. C V R Rajendra, Executive Director of Bank of Maharashtra also said that there is no point changing rates as the policy rates remains same.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

The recent interest rate hike
Credit profile and its effect on loan...
Need of nomination in bank accounts
A checklist of investment options for...
Medical Insurance: Save tax along with health

MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive