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
  • Bars, Pubs & Lounge
    An enthusiastic bunch of astronomers, space cadets and chefs came..
    Locations looking for expansion Delhi
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 2 Cr. - 5 Cr
    Space required 8000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Fashion accessories - women
    About Us: UNISO is the modern shopping destination for modern INDIA. We..
    Locations looking for expansion Karnataka
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 30lac - 50lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Cosmetics & Beauty Product Stores
    About Us: Established in the year 2000, Renewcell Cosmedica LLP formerly..
    Locations looking for expansion Maharashtra
    Establishment year 2000
    Franchising Launch Date 2018
    Investment size Rs. 5lac - 10lac
    Space required 300
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Online learning/E-learning
    About Us: FRANCHISEES ENQUIRIES WILL BE ENTERTAINED OF THOSE PEOPLE ONLY..
    Locations looking for expansion Gujarat
    Establishment year 2003
    Franchising Launch Date 2015
    Investment size Rs. 50 K - 2lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Rajkot Gujarat
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