RBI keeps rate hike option open

The Reserve Bank on Friday said that it is open to a hike in key policy rates if the situation so warrants, even though there is an indicative pause on such a measure for three months.

The Reserve Bank on Friday said that it is open to a hike in key policy rates if the situation so warrants, even though there is an indicative pause on such a measure for three months.

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"The governor said that it may not be necessary...but that does not mean if the pause is there you cannot do that (read rate hike).

If it needs to be done, it can be done, that is his choice (read Governor)," RBI deputy governor K C Chakrabarty on Friday said that when asked if the central bank can still hike rates despite its indication for a pause in the November policy.

He was speaking on the sidelines of a seminar jointly organized by CII and Suresh Neotia, Centre of Excellence. On November 2, Governor D Subbarao had said, "The likelihood of further rate actions in the immediate future is relatively low."