Sensex slips below 25,700 after RBI keeps rates unchanged
Zee Media Bureau
The benchmark Bombay Stock Exchange Sensex on Tuesday slipped below 25,700 in late morning trade after the RBI kept interest rates unchanged in its monetary policy review.
After a positive opening, the Sensex turned lower by 31.67 points, or 0.12 percent, to 25,691.49 soon after the Reserve Bank announced its bi-monthly monetary policy review.
The Reserve Bank of India today kept interest rates steady in its bi-monthly monetary policy review due to growing concerns that disappointing monsoon rains will lead to a surge in food prices.
This is the third time in a row that interest rates have been left unchanged amid demands for moderation to spur growth.
The RBI, in its third bi-monthly monetary policy statement, left the short-term lending rate or repo rate and the cash reserve ratio (CRR) unchanged at 8 percent and 4 percent, respectively.
However, as a liquidity inducing-measure, the RBI brought down the Statutory Liquidity Ratio (SLR) — thamount of deposits banks keep in government bonds — by 0.5 percent to 22 percent.
Similarly, the wide-based National Stock Exchange index Nifty declined by 10 points, or 0.13 percent, to 7,673.565.
With agency inputs