Business News Updates

Monday, January 4, 2010

Liquidity tightening ahead this month

Reserve Bank of India is expected to hold its quarterly monetary policy review on January 29. It is expected to tighten cash reserve ratio (CRR) requirements for banks. However, some economists still remain divided on the timing of changes in policy rates.

According to the prime minister's economic adviser, C. Rangarajan, an adjustment in policy interest rates is not warranted at the moment but liquidity tightening may be needed.

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