RBI stuns Govt, keeps Rates Unchanged
TNI Bureau: The Reserve Bank of India (RBI) on Monday stunned the investors and debtors, keeping the repo rate and the Cash Reserve Ratio (CRR) unchanged at 8.0 per cent and 4.75 per cent, respectively, at its mid-quarter monetary policy review.
“On the basis of an assessment of the current economic situation, it has been decided to: keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.75 per cent of their net demand and time liabilities; and keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent”, the bank said in a statement on Monday.
However, the apex industry chambers Associated Chambers of Commerce and Industry of India has been disappointed with the current move by the RBI. It said that a cut in the policy rates could have given boost to the industrial sector when there is a sharp decline in the production growth in April.