New Delhi: The Reserve Bank of India unveiled its quarterly review of monetary policy on Tuesday. The bank left two key rates, the repo rate and reverse repo rate unchanged. The repo rate, which is the rate at which the RBI lends cash to banks, remains 4.75%. And the reverse repo rate, which is the rate at which the RBI borrows from banks, is still 3.25%.
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The reserve bank said its priority was to promote economic growth during the downturn. It forecast a 6% growth rate, but also projected inflation will increase to 5 %. The RBI review also added that an erratic monsoon could negatively impact the Indian economy.
India’s biggest consumer goods company posted worse than expected first quarter results. Hindustan Unilever or HUL says its net profits fell by 2.7% to Rs543 crore. This is despite an increase in net sales of nearly 8%.
Kotak Mahindra Bank posted impressive first quarter earnings. The company reported a 72% hike in its consolidated net profits to Rs257 crore.
Markets ended in the red on Tuesday after a choppy day of trading. The Sensex fell 43 points to close at 15,332, while the Nifty fell 8 points, ending the day at 4564.
BJP leader, L.K. Advani, has strongly criticized the joint statement signed by India and Pakistan two weeks ago. He said the statement was a capitulation and that the government had agreed to talk to Pakistan even if it does not crack down on terrorists. Advani also criticized the mention of the Pakistani province of Balochistan in the statement.
India and Pakistan signed the joint statement on 16 July at the non-aligned movement summit in Egypt.