The Reserve Bank of India has kept rates unchanged in its Credit Policy review on Tuesday. Cash Reserve Ratio (CRR) remains unchanged at 7.5 per cent, while the repo rate, the rate at which the RBI borrows from the banks, is held steady at 7.75 per cent. The bank rate and the reverse repo rates have also been held steady.
Announcing the Policy, RBI Governor Dr Y V Reddy stated that the policy endeavor would be to contain inflation close to five per cent in 2007-08. He also stated that liquidity management would assume priority in the conduct of monetary policy through appropriate and timely action. The policy review that seeks to condition inflationary expectations in the range of 4 - 4.5 per cent comes within days of Finance Minister P Chidambaram''s statement that he would be sunk in case there was a high inflation, along wit
h high economic growth.
Announcing the Policy, RBI Governor Dr Y V Reddy stated that the policy endeavor would be to contain inflation close to five per cent in 2007-08. He also stated that liquidity management would assume priority in the conduct of monetary policy through appropriate and timely action. The policy review that seeks to condition inflationary expectations in the range of 4 - 4.5 per cent comes within days of Finance Minister P Chidambaram''s statement that he would be sunk in case there was a high inflation, along wit
h high economic growth.
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