RBI hints 2nd quarter review may not lower policy rates:Ahead of second quarter review of monetary policy on October 25, RBI indicated that it may not lower the key interest rates as inflation is still high.
We need to bring inflation down in order to bring interest rates down," RBI Governor D Subbarao said here.
He further said that the central bank is conscious of the need to bring down interest rates to boost economy, but it might take time.
RBI is for a low interest-rate regime but that will take time, he said.
The Governor expressed concern over the rising inflation, but said it could be controlled by the end of this year.
The Reserve Bank of India (RBI) is scheduled to hold its quarterly review of credit policy on October 25. However, it is unlikely that the RBI will pause its rate hike strategy on account of the slowdown in industrial output growth.
The RBI has already hiked rates 12 times since March, 2010, to control inflation, which stood at 9.8 per cent in August.
During August, the Index of Industrial Production (IIP) declined to 4.1 per cent against 4.5% recorded in the same month a year ago.
Banks will draw up specific strategies to improve the credit-deposit ratio in three districts of Rajasthan, namely, Dungarpur, Rajsamand and Sirohi which have low CD ratio.
State government of Rajasthan will release its share of Rs 39 crore towards recapitalisation of five regional rural banks in Rajasthan, it said.
The Governor and other senior officials of RBI are in Jaipur to attend a meeting of the Reserve Bank's Central Board of Directors being held in Jaipur tomorrow.
Infosys Q2 surprise + festive season demand = Happy market?:The market was a picture of strength today. Strong global cues and the positive surprise from Infosys helped the frontline indices clock a 2.5% rally.
The rally was also reflective of global cues as the sentiment across markets perked up after Eurozone leaders pledged to unveil a plan to solve the region's sovereign debt crisis soon.
But the key trigger for today's rally was definitely the positive Infosys numbers.
For the second quarter of the fiscal, Infosys has delivered dollar revenue of USD 1,746 million...the 4.5% revenue growth helped Infy meet the top end of its own guidance.
The bottom-line too came in above estimates, rising 11% to Rs 1,900 crore.
Infosys has marginally marked down FY12 dollar revenue guidance to 17-19%, but on the other hand it has significantly raised rupee EPS guidance to 143-145.
Analyst expected Infosys to have a decent second quarter, but they have come up with what one could call excellent second quarter with a robust growth.