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)
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With the Nifty breaching 8,500, sentiments are again bullish. But markets have been in the 8,200-8,600 range for some time and stocks across the board do not give the required confidence except for the liquidity factor. Many frontline stocks are not participating on the upside and the core sector is in a downtrend, writes Ambareesh Baliga. Column