MUMBAI The Reserve Bank of India did not cut banks' cash reserve ratio (CRR) on Tuesday as liquidity tightness was due to slow government spending, Subir Gokarn, a deputy governor, said.
He said the central bank will buy bonds through open market operations going forward, if needed.
Earlier in the day, the RBI left its key interest rates and the CRR unchanged, but said policy focus was shifting towards growth, reiterating its October guidance of further easing in the first quarter of 2013 as inflation was seen cooling.
(Reporting by Swati Bhat; Editing by Sunil Nair)
Trending On Reuters
The man Prime Minister Narendra Modi has tasked with launching a China-style infrastructure boom calls himself a "bulldozer" and promises to add two percentage points to India's economic growth in two years. Full Article