Business   

RBI board to meet in Ranchi today

— PHOTO: PTI

HIGH EXPECTATIONS: The Reserve bank of India Governor, Y. V. Reddy (right), being welcomed by Zonal Manager of ‘Jharkhand State Level Bankers Committee’, M. P. Srivastava, after his arrival at Birsa Munda Airport in Ranchi on Wednesday.

NEW DELHI: Amid problems caused by a depreciating dollar and rising foreign exchange inflows, the Reserve Bank of India board is meeting in Ranchi on Thursday to review monetary developments and discuss steps that may be initiated during the mid-term review of the credit policy on October 30.

The meeting of the RBI’s central board assumes significance as the central bank is in the process of firming up measures to deal with conflicting problems that include sluggish demand and slow growth of credit on one side and rising liquidity fuelled mainly by foreign exchange inflows on the other.

Ahead of its board meeting, RBI Governor Y. V. Reddy had met heads of major banks and representatives of industry chambers to elicit their views on monetary developments and the steps that the central bank could take in its mid-year review of the credit policy to meet the aspirations of industry.

One of the major problems that the RBI is facing is the acceleration of inflow of foreign exchange in the aftermath of the U.S. sub-prime mortgage crisis and the rate cut announced by the U.S. Federal Reserve.

According to the Reserve Bank of India weekly bulletin, foreign exchange inflows during the week-ended September 18 zoomed to $11.87 billion as against $3.70 billion in the previous week.

These inflows are fuelling the stock market with the BSE Sensex speeding past the 18000-mark and the rupee piercing the nine-year high mark of 40 to a dollar value.

The initiatives of the RBI in the past to encourage outflow of foreign exchange by relaxing the regulatory norms do not seem to be yielding results. — PTI

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

SBI’s reverse mortgage loan from October 12
Sensex gains 378 points on FII inflow
RBI board to meet in Ranchi today
Rupee gains further ground
iGATE to de-list from stock exchanges
Hero Ultra introduces electric scooters
Exchange Rates
Bullion Rates
NACIL gets financial package
Maruti cuts discount on Alto, M800
Lupin acquires Japanese pharma co.
Mineral policy to be put for Cabinet nod
Bharti joins Rs. 2 trillion club
Morgan Stanley gets licence
Mahindra group to enter retail business
BoB, Pioneer Investments sign agreement
Power Finance second quarter net up 23 p.c.
CCS Infotech gets DGS&D rate contract
Ma Foi ties up with Calsoft
Google SMS for mobile users
SBI reduces rates on retail loans
New range of TVs from LG Electronics

Copyright © 2007, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu