RBI 'ready' to respond to market uncertainty
The central bank says it is keeping a very close watch on financial markets so that it can respond appropriately to uncertainties in global markets.business Updated: Jan 28, 2008 18:18 IST
The Reserve Bank of India (RBI) said on Monday it was keeping a very close watch on financial markets so that it could respond appropriately to uncertainties in global markets, and inflation risks from high international oil and food prices continued.
The RBI holds an interest rate review on Tuesday, with just over half the analysts polled by Reuters expecting a 25 basis point cut in its key lending rate to 7.5 per cent after a hefty 75 basis point cut in US interest rates last week.
"The Reserve Bank of India continues to maintain enhanced vigilance so as to respond appropriately to the prevailing uncertainties in global financial conditions," it said its Oct-Dec quarterly review of macroeconomic and monetary developments.
"Headline inflation has remained suppressed at the current juncture and inflation risks on account of oil prices remain incipient," it said.