Volatile capital flows may pose policy challenges: RBI

The Reserve Bank said rapid and
volatile capital flows could present significant policy
challenges, potentially leading to exchange rate overshooting,
asset-price volatility and financial instability.

No reason for RBI to tighten money supply: Chief Eco Advisor

There is no reason for the Reserve
Bank to tighten money supply in its policy review to be
announced later this month, Chief Economic Advisor of the
government Kaushik Basu today said.

RBI Reference rate for US dollar and euro

The Reserve Bank of India fixed the Reference rate for the US currency at Rs 46.51 per
dollar and the single European unit at Rs 66.48 per euro from
Rs 46.65 per dollar and Rs 66.83 per euro respectively, as on
January 1.

Credit offtake remains subdued in 2009

Credit offtake remained subdued at 11 per cent during the one-year period ending December 18, indicating the economic activity is yet to fully pick up momentum.

RBI hints at tightening money supply to curb inflation

Concerned over the spiralling food prices, the Reserve Bank has indicated at tightening money supply to contain the rising inflation pressures.

RBI says focus on managing inflation, growth

The focus of India`s monetary policy is shifting to managing recovery and containing inflation from one concentrated on fostering growth after the global downturn, a deputy governor has said.

Food prices fuel inflation pressures: RBI

Rising food prices are fuelling concerns of broader price pressures in India and the policy challenge is to address the supply-side constraints, RBI has said.

RBI likely to raise CRR by mid-Jan: J&K Bank

The Reserve Bank may raise the cash reserve ratio by up to 50 basis points in the second week of January to suck liquidity from the system, said Haseeb Drabu, a known economist and Jammu & Kashmir Bank chairman.

RBI`s quarterly review on January 29

The Reserve Bank today said it will come out with its third quarter review of the monetary policy for the current fiscal on January 29.

India in middle of eco recovery: RBI Dy Governor

India is in the middle of the economic recovery, the Reserve Bank`s Deputy Governor Subir Gokarn, said.

RBI issues draft norms for detection of soiled currency notes

To improve the quality of currency notes in the country, the Reserve Bank came out with a draft guideline for mechanical detection of notes unfit for circulation and replacing them with new ones on Wednesday.

Tightening of key policy rates won’t affect growth: Kamath

ICCI Bank chairman K.V. Kamath on Tuesday said even if there is a tightening of policy rates, companies will be able to source finance and manage expansions from other sources.

RBI can increase interest rate to tame price rise: Rangarajan

The Prime Minister’s Economic Advisory Council chairman, C Rangarajan, on Monday suggested that the Reserve Bank of India could reduce money supply and raise the interest rate to tame the rising prices of food articles.

Bankers see higher rates, strong credit growth next year

With a substantial recovery from the slowdown expected in 2010, top bankers have said this could be translated into a healthy pick-up in credit growth, but may also result in a higher interest rate regime.

Rate talk swirls around RBI, Fin Min meet

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.

RBI in dilemma over raising rates

Raising interest rates could attract more capital into India and complicate policymaking, says the finance ministry.

RBI may raise rates in Jan: Stanchart

The Reserve Bank of India (RBI) may raise its key policy rates by 25 basis points in January, earlier than previously thought, to tame accelerating inflation, Standard Chartered Bank said on Wednesday.

Inflation: PMEAC expects RBI measures very soon

The Prime Minister`s economic
panel on Tuesday said inflation is likely to cross RBI`s projection
and the central bank may take actions in December itself.

Assocham calls for consolidation of banks

Industry body Assocham on Monday
called for consolidation in the Indian banking sector without
any delay to enhance global competitiveness, despite dithering
of RBI on the issues.

RBI may hike CRR by 0.5% by next month: Macquarie

Reserve Bank, which has started
exiting its easy money regime, might hike its Cash Reserve
Ratio and policy rates over the next 4-5 months, research firm
Macquarie said.