RBI to look at macro situation before deciding on rate cut: K C Chakrabarty
"Definitely today the policy rate is 8 per cent. Inflation should come not come down to 3 per cent to review the rate but that is depending on the macro economic situation," RBI Deputy Governor K C Chakrabarty said here.
He added that 7 per cent inflation is definitely not comfort zone.
RBI has at many occasions said that it should be around 5 per cent.
The RBI is scheduled to announce its third quarter monetary policy review on January 29. The central bank has hinted that it could go in for an interest rate cut in the review.
Last month, the RBI left key policy rates unchanged in its monetary policy review on concerns of inflation. The central bank left the short-term lending (repo) rate and the Cash Reserve Ratio (CRR) unchanged at 8 per cent and 4.25 per cent, respectively.
On the final guideline on the new bank licences, Chakrabarty said it will be released but refused to give any timeline.
"As and when it is released you will come to know," he added.
Last month, Parliament had approved Banking Laws (Amendment) Bill aims at strengthening banking regulation. It allows RBI to supersede boards of private banks and increase the cap on voting rights of private investors in public sector banks to 10 per cent, from 1 per cent now.
As per the draft guidelines on new