Interest rates unchanged |
The Reserve Bank of India on February 3 held interest rates steady at 7.75 per cent after easing monetary policy just three weeks ago, leaving its next move probably until after the government presents its annual Budget at the end of this month. The RBI cut the statutory liquidity ratio (SLR) — or the amount of bonds that lenders must set aside — by 50 basis points to 21.5 per cent of deposits from February 7, prodding banks to increase lending. The RBI also announced a slew of initiatives to develop markets, including allowing foreign institutional investors to re-invest government bond coupons even when their investment limits are exhausted. The RBI said it wanted more comfort that inflation would continue to ease and that it would await action from the government regarding the country`s finances.
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