Cut in cash reserve ratio unlikely, for now

Cut in cash reserve ratio unlikely, for now

Our Banking Bureau / Mumbai April 11, 2006

The easing of the liquidity tightness has provided the Reserve Bank of India (RBI) the comfort to side-step the demand for liquidity infusion through a cash reserve ratio cut when it announces the 2006-07 annual credit policy on April 18.

But analysts said the central bank might have to finally cut CRR a few months down the line when it would review the policy as a sizeable increase in demand for credit from infrastructure is expected to emerge.

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