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RBI seen holding rates, focus on CRR

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Agencies

Posted: Jan 24, 2012 at 1004 hrs IST

Mumbai The Reserve Bank of India is likely to hold its key interest rate steady on Tuesday, deeming that inflationary risks remain high even as growth slows in Asia's third largest economy.

In a report on Monday, the RBI also gave little indication that it might cut the cash reserve ratio (CRR), the share of deposits banks must maintain with the central bank, although many analysts think there is still a chance that it will.

The policy decision is due at 11 a.m.

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