Tuesday, January 27, 2009

RBI holds rates, asks banks to pass on easing

The Reserve Bank of India left its key interest rates steady on Tuesday, saying banks still had to pass on the benefits of previous cuts, but analysts expect another reduction in coming months to shore up the slowing economy.

Asia's third-largest economy is poised to grow at 7 percent or less in 2008/09, its slowest in six years, the central bank said in its quarterly review, as a global downturn following the financial crisis hurt the economy much more than expected.

"To arrest the moderation in economic growth, it is critical that banks expand the flow of credit to productive sectors of the economy and do so at viable rates," the central bank said.

Since the global financial crisis really hit India hard last September, the Reserve Bank of India (RBI) has cut its short-term lending rate by 350 basis points and slashed reserve requirements to keep credit flowing, while the government has taken a slew of fiscal steps to stimulate the economy.

The central bank said there was now clear evidence of further slowdown as a consequence of global downturn and urged banks to do more in response to its rate cuts.

To read more, please, visit - Reuters

Share your views:

Annalists expects more cuts. RBI is insisting on passing benefits to real economy in the form of rate cuts. As a real estate investor what do you expect? After all we are 'real economy'! Please, share your views in the comments. (Comments Policy)

Feel free to call me:

I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 5 minutes!) Call +91 98600 44110

Subscribe for Free!

To receive free emails or free RSS feeds, please, subscribe to Ravi Karandeekar's Pune Real Estate Investment Blog

For my blogs on Pune real estate market news, real estate projects near Hinjewadi, real estate advertising and marketing in Pune and other related topics, please, visit and join my Ravi Karandeekar's Pune Real Estate Blog Group

No comments:

Post a Comment