RBI keeps repo rate and CRR unchanged, stocks slump

Reserve Bank of India left interest rates and cash reserve ratio for banks not changed on Monday, defying widespread expectations for a rate to take as it warned that doing so may worsen inflation, disappointing the market. The Reserve Bank of India kept its repo policy rate unchanged at 8%and left the cash reserve ratio for banks at 4.75%.
"Further reduction in interest rate policy at this juncture, rather than supporting growth, could exacerbate inflationary pressures," written by RBI in its mid-quarter review policy.
Indian bond and stock prices dropped while the rupee weakened against the dollar after the RBI unexpected decision to hold rates steady.
The benchmark 10-year bond yield rose 9 basis points to 8.43% from levels before the announcement, while the new 10-year bond yield rose about 7 basis points. The main BSE index erased gains to fall 0.6% from the prior decision.
"The Reserve Bank of India's action is clearly disappointing," said Sujan Hajra's, chief economist at Anand Rathi of the securities in Mumbai.
"Inflation remains a concern, but slowing growth need at least a 50-basis-point rate cut. The RBI The ease sooner or later, otherwise there are more challenges to growth," he said.
After cutting its policy rate by 50 basis points in April, the Reserve Bank of India is widely expected to leave rates unchanged in June. But global and domestic economic conditions have deteriorated sharply since then, driving expectations for a cut in both interest rates and cash reserve ratio.
India March quarter economic growth of 5.3% is far worse than expected and the weakest annual speed in nine years. The data sparked calls from industry for immediate action to lift an economy that Standard and Poor's says will be the first BRIC country to lose its investment-level credit rating.
April industrial output figures last week suggested little pickup in economic growth heading into the current quarter.
The government is politically hamstrung, so as not to encourage reform and its deep fiscal deficit will leave no room to provide stimulus spending in a time when the euro area debt crisis is weighing on the global economy, the factors a set to dominate a meeting of G20 in Mexico on Monday and Tuesday.
However, the RBI Governor Duvvuri Subbarao has less room for maneuver after the May benchmark inflation rose to 7.55%, the highest in the industrialized countries and the BRIC group of Brazil, Russia, India and China.
Investors and companies long called for India to implement the pro-development policies that spur investment and help remove the bottlenecks to economic restrictions blamed both for growth and keeping inflation high.
http://www.3webdirectory.info/detail.php?id=74684
http://www.take-fun.com/detail.php?linkid=49735
http://www.take-fun.com/detail.php?linkid=49738
http://decily.com/detail.php?id=113978
http://directory.shareberg.com/detail.php?id=2090
http://decily.com/detail.php?id=113985
http://anadirectory.info/detail.php?id=107173
http://anadirectory.info/detail.php?id=107182
http://www.3webdirectory.info/detail.php?id=74685
http://decily.com/detail.php?id=113988
http://goolinx.com/detail.php?id=184474
http://anadirectory.info/detail.php?id=107186
http://cabdir.com/detail.php?id=28241
http://directory.shareberg.com/detail.php?id=2086
http://skelpy.com/detail.php?id=42349
http://cabdir.com/detail.php?id=28237
http://vdiweb.com/detail.php?id=14941
http://ip-72-55-190-165.static.privatedns.com/detail.php?id=53984
http://website-submission-info.domain-parking-companies.com/detail.php?id=51643
http://www.take-fun.com/detail.php?linkid=49740
http://www.3webdirectory.info/detail.php?id=74688
http://anadirectory.info/detail.php?id=107170
http://ausv.org/detail.php?id=49914
http://anadirectory.info/detail.php?id=107178
http://ip-72-55-190-165.static.privatedns.com/detail.php?id=53987
http://ausv.org/detail.php?id=49916
http://website-submission-info.domain-parking-companies.com/detail.php?id=51647
http://website-submission-info.domain-parking-companies.com/detail.php?id=51648
http://website-submission-info.domain-parking-companies.com/detail.php?id=51642
http://ausv.org/detail.php?id=49910
http://cabdir.com/detail.php?id=28230
http://cabdir.com/detail.php?id=28232
http://anadirectory.info/detail.php?id=107181
http://www.globalweblink.info/utahadvocates.com-84280.html
http://goolinx.com/detail.php?id=184479
http://www.take-fun.com/detail.php?linkid=49734
http://decily.com/detail.php?id=113989
http://vdiweb.com/detail.php?id=14936
http://directory.shareberg.com/detail.php?id=2091
http://vdiweb.com/detail.php?id=14940
http://goolinx.com/detail.php?id=184478
http://www.3webdirectory.info/detail.php?id=74686
http://skelpy.com/detail.php?id=42358
http://goolinx.com/detail.php?id=184475
http://skelpy.com/detail.php?id=42354
http://skelpy.com/detail.php?id=42351
http://ip-72-55-190-165.static.privatedns.com/detail.php?id=53983
http://website-submission-info.domain-parking-companies.com/detail.php?id=51644
http://directory.shareberg.com/detail.php?id=2085
http://ip-72-55-190-165.static.privatedns.com/detail.php?id=54000
http://website-submission-info.domain-parking-companies.com/detail.php?id=51640
http://ip-72-55-190-165.static.privatedns.com/detail.php?id=53969
http://skelpy.com/detail.php?id=42352
http://directory.shareberg.com/detail.php?id=2082
http://vdiweb.com/detail.php?id=14943
http://anadirectory.info/detail.php?id=107185
http://ip-72-55-190-165.static.privatedns.com/detail.php?id=53980
http://www.take-fun.com/detail.php?linkid=49737
http://cabdir.com/detail.php?id=28236
http://vdiweb.com/detail.php?id=14942
http://ausv.org/detail.php?id=49915
http://ausv.org/detail.php?id=49909
http://cabdir.com/detail.php?id=28243
http://directory.shareberg.com/detail.php?id=2088
http://skelpy.com/detail.php?id=42357
http://ausv.org/detail.php?id=49917
http://www.3webdirectory.info/detail.php?id=74690
http://ausv.org/detail.php?id=49911
http://www.take-fun.com/detail.php?linkid=49731
http://decily.com/detail.php?id=113984
http://ausv.org/detail.php?id=49912
http://vdiweb.com/detail.php?id=14939
http://vdiweb.com/detail.php?id=14944
http://goolinx.com/detail.php?id=184480
http://cabdir.com/detail.php?id=28239
http://directory.shareberg.com/detail.php?id=2087
http://directory.shareberg.com/detail.php?id=2083
http://goolinx.com/detail.php?id=184476
http://decily.com/detail.php?id=113983
http://www.take-fun.com/detail.php?linkid=49730
http://goolinx.com/detail.php?id=184473
http://goolinx.com/detail.php?id=184477
http://skelpy.com/detail.php?id=42355
http://decily.com/detail.php?id=113981
http://decily.com/detail.php?id=113979
http://www.3webdirectory.info/detail.php?id=74683
http://website-submission-info.domain-parking-companies.com/detail.php?id=51645
http://vdiweb.com/detail.php?id=14937
http://website-submission-info.domain-parking-companies.com/detail.php?id=51641
http://cabdir.com/detail.php?id=28235
http://decily.com/detail.php?id=113976
http://cabdir.com/detail.php?id=28238
http://www.3webdirectory.info/detail.php?id=74689
http://ip-72-55-190-165.static.privatedns.com/detail.php?id=53990
http://anadirectory.info/detail.php?id=107174
http://www.take-fun.com/detail.php?linkid=49739
http://ip-72-55-190-165.static.privatedns.com/detail.php?id=53977
http://goolinx.com/detail.php?id=184481
http://www.3webdirectory.info/detail.php?id=74677
http://www.3webdirectory.info/detail.php?id=74682
http://cabdir.com/detail.php?id=28240
http://website-submission-info.domain-parking-companies.com/detail.php?id=51639
http://ausv.org/detail.php?id=49908
http://vdiweb.com/detail.php?id=14935
http://skelpy.com/detail.php?id=42346
http://goolinx.com/detail.php?id=184472
http://ip-72-55-190-165.static.privatedns.com/detail.php?id=53994
http://directory.shareberg.com/detail.php?id=2084
http://www.take-fun.com/detail.php?linkid=49726
http://decily.com/detail.php?id=113986
http://www.take-fun.com/detail.php?linkid=49732
http://directory.shareberg.com/detail.php?id=2089
http://vdiweb.com/detail.php?id=14938
http://website-submission-info.domain-parking-companies.com/detail.php?id=51646
http://skelpy.com/detail.php?id=42348