RBI governor meets Mukherjee ahead of policy review
April 3rd, 2012 - 7:15 pm ICT by IANS
New Delhi, April 3 (IANS) Reserve Bank of India Governor D. Subbarao Tuesday met Finance Minister Pranab Mukherjee to discuss the macro-economic situation, two weeks ahead of the monetary policy review.
“It was just a routine meeting. Next week I will come back and brief the finance minister about the macro-economic policy,” Subbarao told reporters after the meeting.
The central bank is scheduled to announce the annual monetary policy review for 2012-13 on April 17.
The industry associations have been pushing for cuts in key policy rates to reduce the cost of credit and boost liquidity in the system.
During an interaction with the RBI governor, president of the Associated Chambers of Commerce and Industry (Assocham) Rajkumar Dhoot called for 0.75 percent cut in key policy rates.
“There is a need to cut the policy rates by at least 75 basis points,” Dhoot told reporters.
The RBI last month cut the cash reserve ratio (CRR), the amount to funds that commercial banks are compulsorily required to hold as cash against their deposits, by 75 basis points to 4.75 percent.
This resulted in the release of an additional liquidity of Rs.480 billion into the system.
However, the central bank has left repo and reverse repo rates unchanged.
Dhoot said Indian industry was passing through a “difficult patch” and high interest rate was affecting investments and overall business confidence.
- India's central bank frees more money for credit (Lead) - Mar 09, 2012
- RBI keeps key rates unchanged as inflation outlook worsens (Lead) - Jul 31, 2012
- India's central bank frees more money for credit - Mar 09, 2012
- RBI keeps key rates unchanged, cuts SLR by 1 percent (Roundup) - Jul 31, 2012
- Rs.17,000 crore released into banking system; retail interest rates expected to fall (Roundup) - Sep 17, 2012
- CRR cut will ease liquidity problems, says Pranab - Jan 24, 2012
- India Inc welcomes rate cut (Lead) - Apr 17, 2012
- Inflation, fiscal deficit leave little room for rate cut - Jul 29, 2012
- RBI mid-quarter review Thursday - Mar 14, 2012
- Shifting focus to growth, RBI infuses Rs.320 bn into system (Roundup) - Jan 24, 2012
- RBI keeps key rates unchanged as inflation persists - Jul 31, 2012
- India's central bank infuses more money into system (Lead) - Jan 24, 2012
- CRR reduction will help ease liquidity problems: India Inc. - Jan 24, 2012
- Inflation too high, says RBI; defends tight money policy (Lead) - Jun 19, 2012
- Reserve Bank of India keeps rates unchanged - Mar 15, 2012
Tags: assocham, bank of india, basis points, business confidence, cash reserve ratio, chambers of commerce, chambers of commerce and industry, commercial banks, economic policy, economic situation, finance minister, high interest rate, industry associations, liquidity, monetary policy, pranab mukherjee, rajkumar, repo rates, reserve bank of india, subbarao