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RBI to retain its monetary stance till 20 April

RBI to retain its monetary stance till 20 April
PTI
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First Published: Thu, Feb 11 2010. 04 42 PM IST
Updated: Thu, Feb 11 2010. 04 42 PM IST
New Delhi: Borrowers may breathe easy for sometime as the Reserve Bank today said it is not going to change its policy rates or other tools, which have a bearing on interest rates, till April 20.
“Please don’t expect any action between now and the next announcement unless there is completely unanticipated, unwarranted event,” RBI deputy governor Subir Gokarn told reporters on the sidelines of an Assocham seminar here.
The RBI is scheduled to come out with its annual monetary policy for the next fiscal on 20 April.
“We had anticipated in our announcement in January that the government would live up to its earlier commitment to bring the (fiscal) deficit down to 5.5% of the GDP and our policy decision on 29 January takes that into consideration,” he said.
The finance minister had set a target of reducing the fiscal deficit to 5.5% of GDP next fiscal from the projection of 6.8% for the current fiscal.
On food inflation, the deputy governor said, “In the event of normal monsoon, I think food inflation situation should moderate towards the end of the year.”
In the monetary policy review on January 29, RBI governor D Subbarao had said, “... on the assumption of a normal monsoon and global oil prices remaining around the current level, it is expected that inflation will moderate from July 2010.”
Gokarn added, “We don’t have week by week expectation. We track the numbers. We have somewhat long term outlook. We expect food inflation to soften.”
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First Published: Thu, Feb 11 2010. 04 42 PM IST
More Topics: RBI | GDP | Monetary policy | Borrowers | Inflation |