Mumbai: Reserve Bank of India (RBI) Governor Duvvuri Subbarao went against the suggestion of a majority of external members of the central bank's monetary policy committee that recommended no change in the policy repo rate at a May 3 policy meeting, according to minutes of the meeting seen by Reuters.
The RBI cut the key policy repo rate for a third straight time in 2013 to 7.25 per cent, pulling it to a two-year low, in a bid to revive decelarating growth and taking into account benign inflation reading.
The committee consists of seven external members, apart from the governor and the four deputy governors. The panel's role is purely advisory, with the governor having the final say.
Four of the seven external members wanted the RBI to hold its repo rate at 7.50 per cent, citing concern over India's high current account and fiscal deficits....
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02:26 AM, May 24, 2013
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...
05:35 PM, May 15, 2013
Frankfurt: The Reserve Bank of India will take note of falling inflation when discussing potential interest rate cuts, the central bank's Governor Duvvuri Subbarao said on Tuesday, adding he was very happy about the falling inflation. Asked about potential interest rate cuts in light of falling inflation, Subbarao said they would be taken into account and in future central bankers "will take note of softening inflation." The headline wholesale inflation...
04:46 AM, 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: Dismissing the criticism that RBI's steps to check inflation have hurt growth, Reserve Bank Governor D Subbarao on Wednesday said the monetary authority has the responsibility to listen to "silent voices" of millions of people impacted by rising prices. "There is an important constituency in the country that is hurt by inflation. Their voice also needs to be heard. It is the responsibility of public policy institutions like the...
02:45 AM, 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: The Reserve Bank of India (RBI) is expected to cut its policy interest rate by a quarter point on Friday for the third time this year as it looks to bolster an economy growing at a decade low and takes comfort from easing inflation. While investors are hoping to hear a less-hawkish tone from RBI Governor Duvvuri Subbarao, the RBI in its report on macroeconomic and monetary developments on...
08:37 AM, May 03, 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
Mumbai: The drop in headline inflation to a 40-month low of 5.96 per cent for March has increased the possibility of a rate cut by the Reserve Bank at its May 3 annual policy, analysts and rating agencies said on Monday. India Ratings said the cooling off in both core and general inflation readings, coupled with fiscal consolidation and reform measures undertaken by Government, will help RBI Governor Duvvuri Subbarao...
07:33 PM, Apr 15, 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 of India (RBI) is expected to cut its key policy rate on Tuesday for the second time in 2013 to help revive a faltering economy, taking comfort from moderating core price pressures and the government's commitment to trim the fiscal deficit. ...
05:28 AM, Mar 19, 2013
India's recent budget should have a softening effect on inflation, Reserve Bank of India (RBI) governor Duvvuri Subbarao said on Wednesday. "Given the circumstances, I think it's (the budget) very measured and responsible," he told students in London. ...
10:36 PM, Mar 13, 2013
The Reserve Bank of India (RBI) rejects the notion that high inflation is the "new normal," RBI Governor Duvvuri Subbarao said, noting that many of the supply-driven causes of inflation can be corrected by appropriate policies. ...
11:00 AM, Mar 09, 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
