Search the Internet          Tips  Sites: Finance, Investment

Jalan keeps options to cut bank rate 'open'

India's central bank chief on Monday retained its Credit Policy option of lowering the bank rate by up to 50 basis points if required by the banking system.

"We have already reiterated in our April Credit Policy that we will keep our options open...that as and when required we could make a rate cut of up to 50 basis points," the Reserve Bank of India Governor Bimal Jalan told reporters.

He was replying to a question, on the sidelines of book release function, on whether a bank rate cut was being considered given the soft interest rate bias.

Replying to another question if the RBI was eyeing a target for the rupee against the dollar's overseas woes, Jalan replied in the negative.

"No, we have no target, we are very comfortable with the forex reserves position and we would like to ensure stability in the market and minimise volatility."

"We are also continuing with our growth projection of 6-6.5 per cent."

ALSO READ:
The Monetary and Credit Policy 2002-2003
More Money Headlines