RBI policy committee advised keeping rates unchanged in April

All members of the Reserve Bank of India's monetary policy technical advisory committee recommended that governor Raghuram Rajan keep interest rates unchanged at its policy review on April 1, according to minutes out on Friday.

That was ultimately the decision taken by Rajan, as the RBI kept the policy repo rate at 8 percent this month because of easing consumer inflation. The decision was in line with market expectations.

In India, the RBI governor decides on monetary policy, while the technical advisory committee serves as a advisory body.

Most members also recommended that RBI should focus on building up forex reserves to manage capital outflow risks, the minutes showed, while one member of the committee was in favour of lowering the banks' statutory liquidity ratio to 22 percent from 23 percent.

EDITORIAL OF THE DAY

  • Enhanced allocations are needed for research to ‘Make in India’ for India

    Even as India flaunts its ambitious ‘Make in India’ initiative from February 13, it spurs several questions.

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Urs Schoettli

The importance of Indonesia

A few weeks ago, the wo­rld was shocked by a ...

Rajgopal Nidamboor

Try to awaken the archaeologist within

Our mind is far ahead of René Descartes’ famous maxim, ...

Bubbles Sabharwal

Social media versus real life

It’s amazing how social media brings out the best side ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture