RBI may retain key rates, ask banks to up lending

RBI may retain key rates, ask banks to up lending
The Economic Times, April 20, 2009, Page Economy, Finance & Markets

The Reserve Bank is likely to retain key policy rates in its annual monetary policy to be unveiled on Tuesday and it may also ask banks to step up lending and pass on the benefit of earlier rate cuts announced by the central bank. Earlier this month at a seminar RBI Governor D Subbarao had said, "The response of banking system (to the policy actions) has been positive...But banks are yet to respond as much as warranted by the policy." According to UCO Bank Chairman and Managing Director S K Goel, "I think RBI is unlikely to alter policy rates. It would rather maintain status quo this time."