The Reserve Bank of India&rsquo;s (RBI&rsquo;s) mid-quarter policy review has finely balanced the requirements of inflation management with growth considerations.

Comments: M D Mallya

Business Standard

The policy landscape in India has undergone a sea change in recent days. The RBI mid-quarter policy statement welcomed the change and provided some support by reducing the cash reserve ratio (CRR) by 25 bps.

Comments: Samiran Chakraborty

The Reserve Bank of India (RBI) has balanced its signals through the two significant portions of the credit policy announced today &mdash; the unchanged repo rate and the moderate cash reserve ratio (CRR) cut of 0.25 per cent. These reflect a continued concern over high inflation and resonance with the recently announced spate of reforms.

Comments: Milind Sarwate

Finance Minister P Chidambaram on Monday exuded confidence that the Reserve Bank would announce far bigger steps to boost growth in its next policy review on October 30. He termed the cash reserve ratio (CRR) cut as a small but welcome measure.

FM hints at rate cut in Oct

The Reserve Bank of India did not take any big step on inflation or growth in its monetary policy review on Monday, but the message it sent out was enough for bankers to signal an imminent cut in lending rates.

Lending rate to pinch less

Reading Tuesday&rsquo;s policy statement in conjunction with the one announced in June, we see renewed resolve in the Reserve Bank of India (RBI)&rsquo;s inflation-fighting approach. The reasons that prompted a rate cut in April&mdash; tight liquidity, a likely decline in inflation and expected fiscal tightening &mdash; have dissipated at the moment.

RBI would remain on the sidelines this year: Taimur Baig

In Tuesday&rsquo;s policy review, the Reserve Bank of India (RBI) has articulated the pain in the economy is going to intensify this financial year, with a reduced gross domestic product growth forecast of 6.5 per cent and an increased inflation forecast of seven per cent. The adverse impact stems from the continuing global financial crisis, uncertainties on crude oil prices, slowdown in capital inflows, concern on the rising fiscal and current account deficits and a poor monsoon.

The SLR cut came as a surprise for the market: Keki M Mistry

The Reserve Bank of India&rsquo;s (RBI) decision to reduce the Statutory Liquidity Ratio (SLR) is likely to bring down bulk deposit rates and encourage banks to cut interest rates on retail loans and working capital finances, said bankers.

SLR cut may reduce bulk deposit rates

The Reserve Bank of India&rsquo;s reduction of one per cent in the Statutory Liquidity Ratio in its first-quarter review of monetary policy is a welcome move.

Reduction in SLR a welcome move: Chanda Kochhar

Faced with the adverse effect of deficient rains, the government might have to spend extra money on drought relief, putting further pressure on the already precarious fiscal situation, according to the Reserve Bank of India (RBI).

Drought-related costs to add to pressure

The Reserve Bank of India (RBI) on Tuesday eased various restrictions on exporters&rsquo; exchange earnings and forward contract transactions. These were imposed earlier to curb volatility in the rupee. RBI said the new step was to provide operational flexibility to exporters and banks.

Norms on forex earnings, forward contracts relaxed

The Reserve Bank of India (RBI) on Tuesday left its key policy rate unchanged at eight per cent in line with expectations, but its sharp tone on inflation doused all hopes of any monetary easing in the near future as well.

RBI douses hopes of rate cut in near future

Sustained foreign funds inflows of over Rs 500 crore in stocks also helped the rupee recovery while late recovery in dollar

Rupee logs best gain in a week, up 20 paise at 54.72

Reserve Bank of India (RBI) Governor Duvvuri Subbarao has made a series of hawkish statements since the mid-quarter review on June 18, but market participants are still betting on the governor&rsquo;s inclination to surprise the market.

Markets bet on Subbarao surprise

It&rsquo;s worrying to see (annual) GDP (gross domestic product) growth below six per cent. And, equally worrying to see retail core inflation remain close to 10 per cent.

Don't put the cart before the horse

Rate cut expectations in July have softened recently, with strong anti-inflationary rhetoric from the Reserve Bank of India (RBI). It will, however, be difficult for RBI to deny further monetary easing for long, in my opinion, given aggravating growth concerns. Headline inflation will stay stubborn for a while, with possible upsides from fuel and food prices.

July policy a close call rate cuts to follow

A day before the first-quarter review of the monetary policy, the Reserve Bank of India (RBI) has made it clear persistent inflation will continue to be its focus area, even as economic growth is expected to moderate further.

Inflation a big worry, RBI says on policy eve

The RBI&rsquo;s latest policy move is clearly influenced by growing threats of inflation and inflationary expectations to India&rsquo;s macroeconomic stability. Its decision to keep the policy rates and CRR unchanged amid deteriorating growth outlook looks vindicated, given that the news about the May 2012 CPI inflation, which came a tad later on Monday, read 10.36 per cent.

Cautious policy amid stagflationary conditions: M D Mallya

Two days after Finance Minister Pranab Mukherjee threw a not-so-subtle hint in favour of a policy rate cut &ldquo;for the sake of growth&rdquo;, Reserve Bank of India Governor D Subbarao surprised the market by keeping the repo rate and cash reserve ratio (CRR) unchanged at eight per cent and 4.75 per cent, respectively.

RBI pause jolts India Inc, govt

The officials at RBI think interest rates are not a huge factor for the deceleration of growth and think much has been made out of it, while giving a cast-iron justification for holding on to these. But a battered India Inc is not buying into the argument. With status quo continuing, they remain an exasperated lot.

India Inc unhappy at central bank's status quo

The uneasy relationship between the finance ministry and the Reserve Bank of India was one of the worst kept secrets in the financial sector, but observers say even the fig leaf was taken away today.

Finance ministry, central bank's tense partnership on Pranab's watch

Financial Analysis: Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

Finance News Analysis, Financial Analysis and Research | Business Standard

Find the Latest Financial News Analysis & Research Updates from all top sources for the Indian Finance industry on Business Standard.

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