The US fed has already cut its key rate and has sent strong signals for global banks to follow its cue. However, the liquidity in the Indian financial system and inflation are the issues that needs to be balanced by the Reserve Bank of India to maintain a stable economic environment.
The dynamic economic situation is forcing RBI to re-think it’s stand on CRR as surplus liquidity can re-ignite the inflation variable which had risen above 12% a few weeks back. However, global commodity prices have witnessed a sharp decline.
The infusion of more liquidity has an impact on the growth of “loans in india“.
Will RBI take the hard decision and cut the CRR again ?
The Times of India has a story with key statistics. Click here to catch the complete article.
