Apex bank not to change its stand

Apex bank not to change its stand While the new monetary review is awaited with deep breath, one can clearly see that the Reserve Bank of India, has not made much of a change when it comes to changing of key policy rates.

Its course of action regarding the same has been more or less the same and normalization of the interest-rates does not seem to be its priority as of now.

The review is going to come on September 16 and during this time it will consider whether the rates should change or follow the same course of action. If the rates are raised then it will for the fifth time this year.

RBI is forced to look into this since the rate of inflation is still very high and that threatens to discourse the economic growth.

As per a research done by Bloomberg News, majority of scientists believe that Duvvuri Subbarao, governor, RBI will be changing the rates by a quarter to 6 per cent. Many also believe that reverse repurchase rate will also move towards the higher side.

Subbarao is facing intense pressure since the real time inflation is still very high despite it coming down to 8.5 per cent in August