Reserve Bank of India may keep the interest rates steady
Posted on: 17/Jan/2014 2:54:06 PM
The Reserve Bank of India may keep rates on hold at its quarterly monetary policy scheduled on January 28. With inflation easing, industry has appealed for a reduction in interest rates. Wholesale inflation declined to a five-month low of 6.16 per cent in December as food article prices cooled, according to data released yesterday. Retail inflation eased to a three-month low of 9.87 per cent.RBI may keep rates steady in January 2014 review and wait for more information, particularly on trajectory of food inflation, before deciding next course of policy action because core inflation has remained more or less flat in December 2013.
The RBI had kept key policy rates unchanged last month on expectations that wholesale and retail inflation would ease.The central bank had increased the key policy rate (repo) twice between September and November to check inflation. The rate is currently 7.75 per cent.
