| Cut in cash reserve ratio unlikely, for now |
| Our Banking Bureau / Mumbai April 11, 2006 |
| The easing of the liquidity tightness has provided the Reserve Bank of India (RBI) the comfort to side-step the demand for liquidity infusion through a cash reserve ratio cut when it announces the 2006-07 annual credit policy on April 18. But analysts said the central bank might have to finally cut CRR a few months down the line when it would review the policy as a sizeable increase in demand for credit from infrastructure is expected to emerge. Banks |
