NEW DELHI: The Reserve Bank is not expected to bring any changes in the key interest rate during its upcoming monetary policy review, which is scheduled for October 30, due to the different inflationary pressures but rather opt for another plunge in CRR, according to a HSBC report.
Moreover, the apex bank has held its short-term lending (repo) rates unchanged at 8% from April 2012.
During its policy review on September 17, RBI lowered the cash reserve ratio (CRR), which is the percentage of deposits banks maintain with central bank, by 0.25% to 4.5%.
Meanwhile, India Inc has demanded for rate cut to strengthen economic growth.
HSBC said, “Given the slightly better domestic activity readings and lingering upside risks to inflation, the RBI is expected to keep the policy rate on hold on 30 October, although another CRR cut is possible.”
In this period, the domestic activity has gained pace, inflation is going up, but no extra structural policy measures have been implemented.