The Reserve Bank of India today in its quarterly review of the Credit Policy left key rates unchanged.
RBI left the cash reserve ratio (CRR) unchanged at 5 per cent, the repo and reverse repo rates have also been left unchanged at 4.75 per cent and 3.25 per cent, respectively.
The Reserve Bank, however, raised statutory liquidity ratio (SLR), the portion of deposits that banks are required to keep in government securities, by 100 basis points to 25 per cent.
The decision to raise SLR, in the second quarterly review of the credit policy, is aimed at reducing liquidity and fighting the inflationary expectations, which has started building up, especially in the case of food items.
RBI raises inflation projection to 6.5 per cent with an upside bias by this fiscal end from 5 per cent projected earlier.
RBI retains GDP growth projection for FY10 at 6 per cent with an upward bias. via. Business Standard
One question still remains on peoples mind. We we out of recession?
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