For Quick Alerts
For Daily Alerts

RBI leaves CRR, repo rates unchanged

RBI leaves CRR, repo rates unchanged
As was largely expected, the Reserve Bank of India (RBI) today left the repo rate (interest rates at which it lends to banks) unchanged, ensuring that interest rates on loans and deposits remain steady.

Despite the huge drop in WPI inflation, the RBI decided to leave interest rates unchanged as a sharp fall in the value of the rupee, is likely to see imported inflation, particularly oil, pushing Inflation in the country higher. This may have played on the mind of policy makers in the RBI.

Today's decision brings to pause the successive rate cuts initiated in the past by the RBI.

"On the inflation front, easing commodity prices at the global level and weaker pricing power of corporates at the domestic level are having a softening influence. Given that food inflation remains high, the inflation outlook will be influenced by concerted efforts to break food inflation persistence. The inflation outlook going forward will be determined by suppressed inflation being released through revisions in administered prices, including the minimum support prices (MSP) as well as the recent depreciation of the rupee," the RBI said in a statement.


"The Reserve Bank's monetary policy stance will be determined by how growth and inflation trajectories and the balance of payments situation evolve in the months ahead. It is only a durable receding of inflation that will open up the space for monetary policy to continue to address risks to growth. While several measures have been taken to contain the current account deficit, we need to be vigilant about the global uncertainty, the rapid shift in risk perceptions and its impact on capital flows. The Reserve Bank stands ready to use all available instruments and measures to respond rapidly and appropriately to any adverse developments" the RBI said.

Read more about: rbi repo rates inflation crr
Story first published: Monday, June 17, 2013, 11:10 [IST]
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more