INFLATION AND TWIN DEFICITS LIMIT SCOPE FOR POLICY EASING
S. Sethuraman
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2013-01-29 16:56
The Reserve Bank of India has after a 9-month interval, cut the key policy lending rate (repo) from 8 to 7.75 per cent, with immediate effect, nudging its monetary policy stance to arrest the loss of growth momentum in the economy, on the back of a moderation in inflation conditions in the second half of the current fiscal year. The reverse repo, marginal standing facility and bank rates would correspondingly stand reduced to 6.75, 8.75 and 8.75 per cent respectively.