Hotline: 1800 102 2007
X
Search Business Opportunities
2013-12-19

RBI leaves key rates unchanged

Reserve Bank India\\\'s Governor Raghuram Rajan sprang a surprise leaving key rates unchanged to back growth but warned that they may be hiked if inflation does not subside.

Reserve Bank India's Governor Raghuram Rajan sprang a surprise leaving key rates unchanged to back growth but warned that they may be hiked if inflation does not subside.


Rajan's reading of declining inflation led to maintaining the status quo on the repo rate at 7.75 percent and cash reserve ratio (CRR) at 4 percent, a move that cheered both the capital market and India Inc.


"If the expected softening of food inflation does not materialise and translate into a significant reduction in headline inflation...Or if inflation excluding food and fuel does not fall, the Reserve Bank will act, including on off-policy dates," he said after unveiling the Mid-Quarter Monetary Policy Review.


The next review is due on January 28.


Rajan said vegetable prices which were primarily responsible for inflation soaring to a 14-month high of 7.52 percent in November, are "turning down sharply" and expected economic growth to be better in the second half of the fiscal.


The decision to keep rates unchanged will be a breather for the industry and retail borrowers in particular as the markets had expected another 0.25 percent hike in the short-term lending rate that could have raised EMIs for home, auto and other loans.


Rajan said economic growth is set to improve in the second half of this financial year on expansion in the agriculture sector, exports and movement in stalled projects.


Factory output shrank 1.8 percent in October, the first contraction in the Index of Industrial Production (IIP) in four months.


Shifting his stance from inflation management, Rajan said continuing weakness in economic growth was the main driver of his policy action.
 

Related opportunities
  • Competitive Exam Coaching Institute
    Career Power - The best opportunity you have to become..
    Locations looking for expansion New Delhi
    Establishment year 2010
    Franchising Launch Date 2014
    Investment size Rs. 10lac - 20lac
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Delhi New Delhi
  • About Us: Yess Pizza has created a Pizzavolution in the food..
    Locations looking for expansion Maharashtra
    Establishment year 2004
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Others Food Service
    About Us: Let's Meat is an innovative brand from Jaipur which..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2017
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Other Vocational Training
    National Award Winner for Year 2017,having 45+ centres across India..
    Locations looking for expansion New Delhi
    Establishment year 2009
    Franchising Launch Date 2012
    Investment size Rs. 5lac - 10lac
    Space required 1200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater New Delhi New Delhi
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts