First Quarter Review of the Monetary Policy for 2010-11
RBI equitably addresses issue of inflation and growth: ASSOCHAM
The Monetary measures announced by RBI equitably address concerns for reigning inflationary expectations and cooling demand pressures as also maintaining sustained growth momentum, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
Welcoming the monetary policy prescription of RBI, ASSOCHAM President, Dr. Swati Piramal said that with the hike in reverse repo rate, general liquidity will be maintained in the system for sustained growth of over 8.5% with positive bias.
Depositors with banking system will have higher interest rates with increase in repo rate and their long standing demand will now be meted out with this decision of RBI. However, the lending rates may move north by 25-50 basis points, making bank?s borrowings a little more dearer since repo rate and reverse repo rate have been hiked by 25 to 50 basis points, added Dr. Piramal.
An analytical review of macroeconomic and monetary developments: First Quarter Review 2010-11, was issued on 26th July 2010, which serves as a background to the First Quarter Review of Monetary Policy 2010-11.
Full Text of First Quarter Review of the Monetary Policy for 2010-11....Click Here
Press Statement by Dr. D. Subbarao, RBI Governor on RBI First Quarter Review 2010-11 ....Click Here