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BASEL - Inflation in India should moderate in the coming months and the central bank will ensure interest rate levels do not have a negative impact on the competitiveness of the economy, the head of Reserve Bank of India said on Monday.

 

"I believe that inflation will moderate in the weeks and months ahead," RBI Governor Duvvuri Subbarao told reporters in Basel.

 

Subbarao declined to comment on possible interest rate moves in the future, but said that the central bank would ensure that their levels would not have any negative impact on the competitiveness of the economy.

 

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MUMBAI  – The Reserve Bank of India (RBI) said on Thursday it has raised the provisioning requirement for advances to commercial real estate classified as standard asset to one percent, from 0.40 percent earlier.

NEW DELHI- A meeting of India's central bank Governor Duvvuri Subbarao with Finance Minister Pranab Mukherjee fuelled speculation on Friday that the bank may tighten monetary policy earlier than expected to stem rising prices.

The Congress-led government is under pressure to tackle spiralling food prices, an issue which can carry a high political cost in a country with millions on marginal incomes, and which has sparked protests and walkouts in parliament.

In its Second-Quarter Review of Monetary Policy, a hawkish Reserve Bank of India (RBI), while staying away from hiking key rates like repo or reverse repo, hiked the statutory liquidity ratio (SLR) to 25% from 24%. The cash reserve ratio (CRR), the minimum amount banks need to park with the RBI, was, however, left unchanged.
Repo and reverse repo are rates at which the RBI lends to banks and vice versa while SLR is the minimum amount of cash, gold or bonds banks need to maintain with themselves.