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RBI may announce a monetary policy on Tues

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Press Trust of India Mumbai
Last Updated : Jan 19 2013 | 10:42 PM IST

Several Bankers and industrialists felt there could be no more hike in short-term key rates and cash reserve ratio (CRR) but some said if there was any hike it could be a mere 0.25 per cent to tame inflation now at 11.89 per cent against RBI's forecast of 5-5.5 per cent by end-fiscal.        

CRR is the percentage of amount that banks are required to park with the Reserve Bank. Repo is the rate at which RBI lends to banks.        

"Inflation seems to have plateaued...With oil prices coming down, the RBI could be expected to come up with a benign monetary policy regime," Godrej Group Chairman, Adi Godrej, said.        

Corroborating Godrej's view, HDFC Bank's Managing Director Keki Mistry and IDBI Chairman, Yogesh Agarawal said it is unlikely that the apex bank would hike rates as it would be detrimental to the industry, already affected by high interest rates.        

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"I do not think that RBI will further hike rates at the quartrely review of monetary policy. There are no indications of a further hike in RBI key-rates. They may wait for 1-2 weeks to see how the inflation is moving," Mistry said.

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First Published: Jul 27 2008 | 3:48 PM IST

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