First quarter review of Monetary Policy on July 28: RBI

Amid industry's demand for interest rate cuts, the Reserve Bank of India will come out with the first quarter review of Monetary Policy on July 28.     

"D Subbarao, Governor, Reserve Bank of India will release the first quarter review of Monetary Policy 2009-10 on Tuesday, July 28, 2009," the RBI said in a release today.     

The statement further said that the review will be released at a meeting of the chief executives of major scheduled commercial banks on that day in the Reserve Bank of India central office in Mumbai.     

With inflation turning negative, industry has been demanding interest rate cuts to propel demand.     

 

However, RBI Governor D Subbarao had said there is no threat of deflation as food and crude oil prices are still firm.     

"India does not suffer from any demand constraints, therefore there is no concern of deflation," Subbarao had said.     

Although the wholesale price index is negative, there are certain parts of the index like food articles where inflation is significant, he had said.

At the same time, oil prices are firming up, he had said, adding there is talk that world food production will be lower than the trend.     

"We will take into account all these developing trends in the July review," Subbarao had said.     

Even after a rise, inflation remained negative at 1.14 per cent during the week ended June 13,     

According to the RBI annual monetary policy, inflation is projected at four per cent at the end of March 2010.