RBI CONTINUES POLICY TIGHTENING TO CONTAIN INFLATION EXPECTATIONS
FIRST MID-QUARTERLY RAISES REPO AND REVERSE REPO RATES
2010-09-23 12:29
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The Reserve Bank of India sees economy's growth impulses strengthening while concerns over double-digit inflation, though moderating, have not lifted, thus calling for a further tightening of monetary policy for the present. In its first mid-quarterly review, RBI has raised both repo and reverse repo rates - the key benchmark rates in liquidity management - at a time real interest rates are still negative in an inflationary situation and deposit growth has declined.