The Hindu Business Line : RBI unlikely to cut key rates in Jan review

NEW DELHI: The RBI may not go in for key policy rate cuts in its quarterly policy review slated for January 23, said a senior finance ministry official.

“We don't expect rate cuts by the RBI,'' the official said, adding the repo and reverse repo rates (short-term lending and borrowing rates) and policy ratios like the cash reserve ratio (CRR) are likely to be retained at the existing level. The RBI is s lated to announce a review of monetary policy on January 23 after taking into account the latest developments in international and domestic markets.

The central bank on January 4 reduced the repo rate (at which banks borrow from the RBI) by 100 basis points to 5.5 per cent, the reverse repo rate (at which the RBI pays to banks) by 100 basis points to 4 per cent, and the CRR (the amount banks are requ ired to park with the RBI) from 5.50 per cent to 5 per cent. - PTI

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