Quarterly policy review: RBI keeps interest rates, CRR unchanged, focus shifts to growth
disappointment but took satisfaction from RBI's guidance that the central bank would consider a rate cut in the January policy review.
Commenting on the policy, Chief Economic Adviser Raghuram Rajan said it is good that RBI sees room for rate cut.
"I think its good that RBI sees that there is room to ease. And clearly they are taking a decision keeping in mind that their main job is combating inflation. I look forward to good news in policy (January)," Rajan said.
"But they (RBI) also have some incentive to seek growth in the country," he said. Ficci President Naina Lal Kidwai said: "… disappointing, industry is crying out for an impetus for investment and growth and lower interest rates would be oxygen to the sentiment which is beginning to turn positive.
" Asserting that RBI has its own constraint, Commerce and Industry Anand Sharma said: "There is, of course, a positive side that India has an independent regulator RBI which is not listening both to myself and finance minister but we expect them to.
" Sharma said: "We are hoping that after major decisions the government has made which has boosted investors morale and confidence, RBI will be less conservative.
" On inflation, the RBI policy review said that WPI inflation is showing some signs of moderation.
"liquidity conditions will be managed with a view to supporting growth... thereby preparing the ground for further shifting the policy stance to support growth," it said.
The RBI said that since the Second Quarter Review in October, the global economy
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