RBI Governor D Subbarao
BT Online Bureau Mumbai Last Updated: December 18, 2012 | 13:04 IST
The Reserve Bank of India on Tuesday went against the market sentiment, ignoring calls of a interest rate cut from the industry and experts alike in its mid-quarter monetary policy review.
Buoyed by a fall in inflation figures in November, bankers and industry leaders alike had been demanding a cut in interest rate to prop up growth and investment.
The central bank left the repo rate and cash reserve ratio (CRR) unchanged on Tuesday.
The repo rate is the rate at which it lends money to commercial banks. It was last reduced in April, by 50 basis points, to 8 per cent. CRR is the portion of deposits banks have to mandatorily park with RBI. It stands at 4.25 per cent now.
Inflation declined to 10-month low of 7.24 per cent in November from 7.45 per cent in the previous month.
The 30-share BSE Sensex traded flat soon after news of no rate cut from the RBI filtered in. The index was at 11.34 trading 0.34 points in red at 19,244.04.
Buoyed by a fall in inflation figures in November, bankers and industry leaders alike had been demanding a cut in interest rate to prop up growth and investment.
The central bank left the repo rate and cash reserve ratio (CRR) unchanged on Tuesday.
The repo rate is the rate at which it lends money to commercial banks. It was last reduced in April, by 50 basis points, to 8 per cent. CRR is the portion of deposits banks have to mandatorily park with RBI. It stands at 4.25 per cent now.
Inflation declined to 10-month low of 7.24 per cent in November from 7.45 per cent in the previous month.
The 30-share BSE Sensex traded flat soon after news of no rate cut from the RBI filtered in. The index was at 11.34 trading 0.34 points in red at 19,244.04.
No comments:
Post a Comment