India's central bank at its fourth bi-monthly monetary policy review on Tuesday has kept key policy interest rates unchanged. Dr. Raghuram Rajan, Governor, Reserve Bank of India (RBI) has decided to keep repo and reverse repo rate at 8% and 7% respectively.
Meanwhile, cash reserve ratio and statutory liquidity ratio have also unchanged at 4% and 22% respectively. The RBI has decided to reduce the liquidity provided under the export credit refinance (ECR) facility from 32% of eligible export credit outstanding to 15% with effect from Oct 10, 2014.
Commenting on the policy, Samantak Das, chief economist and director of Research, Knight Frank India said, "Keeping in mind the uncertainties over food inflation the RBI has kept key interest rates unchanged despite a strong industry proposal to cut rates to boost economic growth. The RBI continues to remain cautious and we do expect them to maintain the status quo for the next three-six months. However, given the central government's focus on real estate and infrastructure, an unchanged policy rate will have a positive impact on the real estate sector. The confidence among consumers owing to interest rates not heading north, coupled with signs of economic revival is likely to boost the demand for real estate."
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.