A CRR cut of 50 bps would have released at least Rs 65,000 crore. The RBI is either satisfied that there is no need to inject such a quantum of funds or that it would use OMOs to provide comfort as and when it is required.
RBI holds rate at 6%: Policy a firm statement of independence by MPC; growth is for govt to take care of
The RBI will not budge on interest rates as inflation threat looms. The statement seems to be clear on this.
Despite the moderation in headline inflation, is the RBI Governor preparing us for a higher level of average inflation?
RBI cuts repo rate, CRR by 25 bps each, says policy intended to support growth<br /><br /> <br /><br />
There's enough in the policy to suggest RBI's rate cut is a contextual response, and it continues to see risks ahead
Having made another big move to ease the liquidity crunch, RBI may well wait till after Budget to cut the repo rate.<br /><br /> <br /><br />
Given extremely tight liquidity conditions and soaring short-term rates, the RBI has no option by to ease liquidity by cutting the cash reserve ratio.