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
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.
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.
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.
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.
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 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.