The Reserve Bank of India has left the key policy rates untouched in its quarterly credit policy review, while lowering the Cash Reserve Ratio to 4.25 % from the earlier 4.5 %. The 25 basis point easing in CRR is projected to make available around Re. 17500 Crore to the economy, thereby easing credit availbility.
The corporates, economists and opinion-makers have been pressing for a lower CRR to ease the liquidity situation in the economy, which has had a negative impact on investments and growth. The RBI has so far not bitten the bullet but has indicated a possible re-look at the key policy rates in the next policy review.