At its upcoming First Quarter Review of Monetary Policy for 2009-10, we expect the Reserve Bank of India (RBI) to maintain a status quo on interest rates.
As a result, we expect the RBI to maintain the Cash Reserve Ratio at 5.00%, LAF Repo and LAF Reverse Repo rate at 4.75% and 3.25% respectively.
We also do not expect the RBI to announce any changes in SLR. The policy stance is expected to continue to remain accommodative with RBI promising to ensure surplus liquidity situation.
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