Frankfurt: The Reserve Bank of India (RBI) has said it would take into account falling inflation while deciding on policy initiative in its review next month. "We certainly will take note of the softening of inflation and the external payments situation in the next mid-quarter policy statement on June 17," RBI Governor D Subbarao said at an event in Frankfurt on Tuesday.
He said he was happy to see that inflation coming down to below 5 per cent mark. The headline wholesale inflation fell to 41-month low in April, dropping within the central bank's comfort zone of less than 5 per cent and fuelling market hopes for more monetary easing to revive sagging economic growth.
RBI is scheduled to announce mid-quarter review of monetary policy for 2013-14 on June 17. Inflation eased to 4.89 per cent in April on account of decline in prices of food items, including fruits and vegetables. Based on the Wholesale Price Index (WPI), it stood at 5.96 per cent in March. In April, 2012, it was 7.50 per cent. April recorded the lowest level of inflation since November, 2009 when it was 4.78 per cent.
Encouraged by the declining trend in inflation, India's Finance Ministry made a case for further rate cut by the RBI to boost sagging growth. "I think we need to look at statement made by RBI Governor during the last policy review where he had stated that RBI is closely monitoring inflation figures and if there is dramatic
05:35 PM, May 15, 2013
Chandigarh: Bank officials' advices of splitting deposits to evade taxes, as exposed in a sting operation by an online news portal, are "undesirable loose talks" but there is no apparent criminality, SBI Chairman Pratip Chaudhuri said on Thursday. "Prima facie, things that have come to our notice it looks (that) there is no criminality in the sense that somebody has suggested splitting up your deposits, say Rs 50 lakh into...
09:45 PM, May 09, 2013
Srinagar: Reserve Bank Governor D Subbarao on Wednesday said the central bank will soon introduce on a pilot basis plastic currency notes as they have longer shelf-life. "We are trying to introduce plastic currency...We hope to introduce it on trial basis and if that succeeds it will be replicated in the entire country," he said during an interactive session with students of Business School of Kashmir University in Srinagar. He...
02:19 AM, May 09, 2013
Mumbai: Reserve Bank Governor D Subbarao on Monday said the Reserve Bank will consider all options available, including reducing the cash reserve ratio (CRR), to manage liquidity in the system. "The assumption that OMOs will be the preferred tool is wrong. Don't go with that assumption. We will use all options available to us depending on the liquidity situation... it could be OMOs, it could be CRR (cut) or it...
02:27 AM, May 07, 2013
Mumbai: RBI Deputy Governor KC Chakrabarty on Tuesday said the central bank may introduce some corrective measures in KYC norms as an when necessary to check any "transaction-level aberrations" in the functioning of banks. "System is good, there is no problem. There are... (at the) transactional level, some aberration will always take place and there is a need to look into those issues and as and when it is necessary,...
03:15 PM, Apr 23, 2013
New Delhi: The Reserve Bank may cut the benchmark short-term lending rate by about 0.25 per cent in its annual monetary policy in May in the backdrop of declining inflation and the urgency to promote growth, say economists. "Right now conditions should enable the RBI to cut repo rate. We expect a cut of 25 basis points (or 0.25 per cent) in its policy in May and may be by...
11:30 AM, Apr 21, 2013
Jaipur: BJP Rajasthan president Vasundhara Raje on Monday demanded apology from RBI Governor D Subbarao for his comment on the rise in food inflation. The RBI Governor by saying that rural people's shift to protein and eating more of egg, milk and fruits is causing food inflation is an insult of the poor, she said. Subbarao should visit Rajasthan to see the ground reality she said. "He should come and...
12:25 AM, Apr 09, 2013
Bangalore: The Reserve Bank of India (RBI) Governor D Subbarao sparked a controversy when he said rise in rural incomes was fuelling food inflation in the country. The Bharatiya Janata Party (BJP), the Left and even the Congress party have condemned his remark saying it is an insult to the poor. Subbarao on Saturday said in Bangalore that the poor segments of the population were seeing an increase in income,...
08:28 PM, Apr 07, 2013
Bangalore: The Reserve Bank of India (RBI) would further ease its monetary policy if inflation comes down, the central bank's governor D Subbarao said Saturday. "We hope that as we go forward, inflation will come down and if that happens, it would be possible for the Reserve Bank to further ease monetary policy," Subbarao asserted at an interactive session of the Federation of Karnataka Chambers of Commerce & Industry (FKCCI)....
11:30 PM, Apr 06, 2013
Mumbai: Reserve Bank Governor D Subbarao has said that price stability was necessary for ensuring sustainable growth in the long term as it helps investors and consumers to take informed decisions. "There might be some trade-off in the short term but in the medium to long term, you need price stability for investors and consumers to make informed choices, a necessary condition to stimulate growth", he said in an interview...
05:00 AM, Apr 05, 2013
Reserve Bank Governor D Subbarao on Friday expressed concerns over Cyprus banks facing meltdown, saying it has implications on the banking sector everywhere. The Cyprus banks' is "such a big issue" as the island nation is inter-connected with the world and what happens there has implications on the banking sector everywhere, he said. ...
02:19 AM, Mar 23, 2013
The Reserve Bank on Monday said there is a limited scope for easing of monetary policy over the next few months as there is a risk of inflation escalation as well as concerns over fiscal and current account deficits. "There is room for monetary easing over the next few months, but that room is limited because of the outlook for inflation and outlook for growth," RBI Governor D Subbarao told...
07:10 PM, Feb 18, 2013
India posted its second highest ever monthly trade deficit of $20 billion in January, worsening from a $17.7 billion deficit in December, piling pressure on a widening current account deficit and limiting scope for the RBI to cut interest rates. ...
05:38 PM, Feb 13, 2013
The Reserve Bank on Thursday said it is in talks with the government to amend the relevant laws to ensure that persons generating fake currency are punished and not those who possess such notes innocently. ...
01:26 AM, Feb 08, 2013
Reserve Bank of India (RBI) Governor D Subbarao on Wednesday asked banks to meet the target of providing banking facilities to small towns soon. "It is unfortunate that 90 per cent villages of the country do not have banking facilities. The target of RBI is to ensure that every family has a bank account," Subbarao said while addressing a programme here. ...
04:14 PM, Jan 16, 2013
India's inflation has come off a peak but is still high, Bloomberg quoted the Reserve Bank of India Governor D Subbarao as saying, a comment that is likely to cool expectations for a rate cut later this month. "When growth is slowing down you can stimulate the economy either by monetary easing or by fiscal stimulus, but both monetary and fiscal side have no room for stimulus. So that is...
11:21 AM, Jan 16, 2013
Mumbai: The Reserve Bank will shortly issue 100 denomination bank notes with inset letter L in the Mahatma Gandhi Series - 2005. These bank notes will carry inset letter 'L' in both the numbering panels bearing signature of RBI Governor D Subbarao, RBI said in a statement on Tuesday. The year of printing 2012 would be on the reverse of the bank note, it added. "The design of these notes...
11:38 PM, Dec 11, 2012
Mumbai: Days ahead of the mid-quarter review of the monetary policy on December 18, RBI Deputy Governor Subir Gokarn on Saturday said inflation continues to the primary concern for the central bank. His comments come amid growth in the second quarter falling to 5.3 per cent in July-September period, triggering demands for a rate cut by the RBI to boost the economy. RBI should not do anything that provide some...
01:49 AM, Dec 09, 2012
New Delhi: RBI Governor D Subbarao on Monday deposed in a Delhi court as a prosecution witness in the 2G case, saying he had questioned in 2007 the spectrum fee of around Rs 1600 crore for pan India licence. Subbarao, who was the Finance Secretary from April 2007 to September 2008, is a key witness in the case in which former Telecom Minister A Raja and others are facing trial....
12:35 PM, Nov 19, 2012
New Delhi: RBI Governor D Subbarao on Tuesday appeared before a Parliamentary panel and said he did not agree with the controversial Finance Ministry note which suggested that Finance Minister P Chidambaram could have insisted on auctioning the 2G spectrum. He also rejected suggestions that allocation of radiowaves resulted in a loss. Subbarao, who appeared before JPC on 2G scam as a former Finance Secretary, told the panel that he...
05:44 PM, Sep 18, 2012
