RBI keeps key interest rates unchanged
MUMBAI: The Reserve Bank of India (RBI) has left all key rates unchanged in its mid-term monetary policy review announced today.
RBI has left the cash reserve ratio (CRR) at 6.5%, repo rate at 8%, and SLR at 25%.
It has lowered the FY09 growth forecast to 7.5-8%. In its statement, the RBI has mentioned that India is not immune to global developments, and that inflation still remains a concern.
The statement added the central bank may add liquidity if required, and would not shy away from curbing liquidity if recent steps seemed inflationary.
RBI said that the rapid credit growth is a cause for concern, and that credit growth needs to be moderate and continued correction. However, it also expressed fears that enhanced government borrowings in H2 may lead to further implications.