Looking at inflation at subzero level, the Reserve Bank of India (RBI) is unlikely to go for any cut in key short- term lending as well as borrowing rates and cash reserve ratio (CRR) in the quarterly annual monetary policy review scheduled on Tuesday. The governor of Reserve Bank of India, D Subbarao met Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee, as part of the pre-policy consultations, on Friday.
The bankers felt that any cut in key-rates at this stage would serve no purpose as there was already surplus liquidity in the system.
Moreover, a still low demand for credit might also prompt the Reserve Bank to maintain a status-quo in its key rates, the bankers said.
Besides this, the Central bank may lay out a clearer roadmap to conduct the Government borrowing programme in a smooth manner and may increase the GDP and inflation forecast for FY10, bankers said.
The bankers felt that any cut in key-rates at this stage would serve no purpose as there was already surplus liquidity in the system.
Moreover, a still low demand for credit might also prompt the Reserve Bank to maintain a status-quo in its key rates, the bankers said.
Besides this, the Central bank may lay out a clearer roadmap to conduct the Government borrowing programme in a smooth manner and may increase the GDP and inflation forecast for FY10, bankers said.
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