RBI hints at raising rates, sensex falls | business | Hindustan Times
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RBI hints at raising rates, sensex falls

business Updated: Oct 28, 2009 00:04 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Home-loan and other borrowers can breathe easy — for now.

The Reserve Bank of India (RBI) on Tuesday kept key interest rates unchanged but obliquely hinted that a rise might not to be far away as policymakers shift focus to contain prices and sustain growth.

“(These) measures constitute the first phase of exit,” RBI governor D Subbarao said while announcing the quarterly review of the monetary policy.

The RBI tightened norms for lending to commercial real-estate projects.

This knocked the wind out of realty companies, taking their share prices down by 6.8 per cent and pulling the Sensex down by 387 points.