TOP STORIES

Train delays least in Tamilnadu, says study

Chennai: Tamilnadu is second in the list of States in India that has the least amount of average...... Read More >>

From all over India to TN to compete on Vedas

Chennai: As many as 450 students are participating in the Inter-Patashala Vedic competition...... Read More >>

High speed wi-fi facility at Central Station

Chennai:  Union Railway Minister Suresh Prabhu will inaugurate the high speed wi-fi services at...... Read More >>

Number of fatal accidents in Chennai come down

Chennai: Good news for Chennaiites: the number of fatal accidents in the city have dropped over...... Read More >>

Vedhika speaks about her next film 'Vinodhan'

Actress Vedhika is busy acting in 'Vinodhan', directed by newcomer Victor Jayaraj. ... Read More >>

MOST POPULAR

VIDEO

RBI keeps rates unchanged, unlocks Rs 40,000 cr of bank funds

Tuesday, 3 June 2014
PTI

Mumbai: Committed to keep inflation under check, RBI Governor Raghuram Rajan today left key rates unchanged and unlocked about Rs 40,000 crore of funds by reducing the amount of deposits banks are required to park in government securities.

This is the second time in a row that interest rates have been left unchanged amid demands for moderation to spur growth.

The repo rate, at which the Reserve Bank of India lends to banks, has been retained at 8 per cent, while the statutory liquidity ratio (SLR) for banks has been cut by 0.5 per cent to 22.5 per cent with effect from June 14.

The cash reserve ratio for banks has been kept unchanged at 4 per cent.

"At this juncture, it is appropriate to leave the policy rate unchanged, and to allow the disinflationary effects of rate increases undertaken during September 2013-January 2014 to mitigate inflationary pressures in the economy," Rajan said while unveiling the Second Bi-Monthly Monetary Policy Statement for 2014-15.

Consumer price index (CPI) inflation, excluding food and fuel, has moderated gradually since September 2013 although it is still elevated, he said.

Rajan, who has increased the repo rate thrice since September, said no more tightening would be warranted if the economy stays on a disinflationary course. He added that the RBI may also consider a cut if the disinflation process is faster than anticipated.

Rajan reiterated the RBI's commitment to its target of getting CPI inflation, which accelerated to 8.59 per cent in April, down to 8 per cent by January 2015 and 6 per cent by the year after.

On growth, Rajan maintained the RBI's median estimate of GDP expansion coming in at 5.5 per cent for this financial year.


      

Today's E-Paper

Polls

How would you rate Kabali?