The possibility of another cut in the cash reserve ratio, the proportion of deposits that banks keep with the central bank, is always on the table, a deputy governor of the Reserve Bank of India said on Tuesday.
Subir Gokarn also said the central bank would use open market operations to address liquidity conditions between policy reviews.
The RBI cut the CRR to 5.50% last week from 6.00% to ease tight liquidity conditions, but left interest rates on hold because of high core inflation.