The feel good factor, again

Leaving interest rates
04 November 2003

Mumbai: The Reserve Bank of India (RBI), in its midyear review of the Monetary Policy 2003-04, has not made any change in the bank rates and the cash reserve ratio (CRR).

The bank and repo rates remain at 6 and 4.5 per cent, respectively. The CRR remains at 4.5 per cent. The RBI has revised the gross domestic product (GDP) growth from 6 per cent to 6.5-7.0 per cent for 2003-04. The CRR has also been left unchanged at 4.5 per cent.

Announcing his maiden policy, RBI governor Dr Y V Reddy said the apex bank will continue with the present stance of preference for a soft and flexible interest environment.

The Governor stated that the inflation outlook remains benign. The RBI has projected an inflation rate of 4-4.5 per cent with a possible downward bias as compared to the earlier projection of 5-5.5 per cent.