RBI: room to cut rates may emerge once inflation comes down
MUMBAI (Reuters) - The Reserve Bank of India will have room to cut interest rates when inflation comes down but whether or not the RBI actually cuts the rate is a bit too premature to say, Governor Raghuram Rajan said on Tuesday after hiking rates in a surprise move.
Rajan also said that it was necessary to make the statutory liquidity ratio (SLR) a liquidity function rather than a funding function, but added that he does not see the need to cut the SLR immediately.
Earlier in the day, the RBI unexpectedly raised its policy interest rate by 25 basis points but said that if consumer price inflation eases as projected it does not foresee further near-term tightening.
(Reporting by Suvashree Dey Choudhury and Mumbai Treasury Team; Writing by Swati Bhat; Editing by Supriya Kurane)
- Tweet this
- Share this
- Digg this
U.S. Secretary of State John Kerry told Prime Minister Narendra Modi on Friday that India's refusal to sign a global trade deal had sent the wrong signal, and urged New Delhi to work to resolve the row as soon as possible. Full Article
China PMIs jump to multi-month highs in July, add to view economy is steadying Full Article