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RBI not to cut Bank Rate, cash reserve ratio

India's central Reserve Bank of India will not cut its bank rate or the cash reserve ratio during its credit policy statement next week, officials said on Thursday.

"No change in the bank rate or cash reserve ratio is being considered at this juncture," RBI Governor Bimal Jalan told reporters on the sidelines of a conference on a mutual fund industry seminar.

The RBI will announce its credit policy for the six months to March next Tuesday.

"The mid-term review of the Monetary and Credit Policy will be an absolutely routine exercise.

"The policy will review the developments in the economy and financial markets, including the forex markets since April," he said.

The Bank Rate is the rate at which RBI lends to commercial banks, while the cash reserve ratio is the amount of cash banks must keep in reserve with the RBI.

The Bank Rate is now 8.0 per cent and the cash reserve ratio is 8.5 per cent.

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