by NR INDRAN / INT
The reduction in CRR will augment primary liquidity and free the lendable resources of banks to the extent of Rs.17,000 Cr.
RBI hasdone a fine balancing act between growth and inflation. However, going forward, it will keep a close watch on liquidity and growth front.
RBI has once again demonstrated that a rate cut is contingent on inflation easing to the comfort zone.
You can contact author @ nr_indran@rediffmail.com