RBI monetary policy review on Jan 27

[sajiv]

Mumbai: Amid talks of further easing the monetary policy, the Reserve Bank on Friday said it will come out with the third quarterly review of monetary policy on January 27.

"D Subbarao, Governor, Reserve Bank of India, will present the Third Quarter Review of Monetary Policy for the year 2008-09 on Tuesday, January 27, 2009," the central bank said in a statement.

Subbarao will meet the chief executives of major scheduled commercial banks at 11.00 a.m. on the same day in the central office, Mumbai.

With Inflation falling for the seventh straight week to to 6.61 per cent for the week ended December 13, there is more leeway for the RBI to cut interest rates, which was even desired by the mid-year review tabled in Parliament recently in case manufacturing continued to be hit by global financial crisis.

The RBI has injected around Rs 3,00,000 crore into the system by cutting policy rates as well as reserve ratios. This has led to lowering of interest rates by banks.

Largest public sector lender State Bank of India lowered its prime lending rates and deposit rates, following which many banks had reduced their lending and deposit rates. Among private sector lenders, HDFC has reduced its PLR.