REUTERS -The RBI left interest rates unchanged but cut the cash reserve ratio for banks, saying the primary focus of monetary policy remains fighting inflation, days after the government unveiled a spree of reforms to boost growth and improve its fiscal position.
A man talks on his mobile phone as he walks past the logo of the Reserve Bank of India (RBI) inside its head office in Mumbai June 14, 2010. REUTERS/Rupak De Chowdhuri/Files
The Reserve Bank of India held the policy repo rate at 8 percent, and subsequently, the reverse repo rate was left unchanged at 7.00 percent.
The RBI cut the cash reserve ratio, the share of deposits banks must keep with the central bank, by 25 basis points to 4.5 percent.
It also left the minimum requirement for banks’ government bond holdings at 23 percent of deposits.