RBI announces credit policy; cuts CRR by 0.25 pc
October 30, 2012  11:12
The Reserve Bank of India on Tuesday cut the cash reserve ratio by 25 basis points to 4.25 per cent, but kept the key policy rates including the repo rate unchanged.

Falling revenues from the services sector and a dip in exports due to global slowdown may result in higher current account deficit in the second quarter of the current fiscal, RBI said in its quarterly review of the economy on Monday.

The merchandise trade deficit has remained at the same level as in the first half of 2011-12, as slowdown in exports was matched by import contraction.

This, coupled with the falling surplus in services trade over the medium term, is likely to leave the current account deficit -- the net of imports and exports of goods and services - too wide for comfort, the RBI report says.
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