Thursday, October 01, 2009

RBI Board Meet in Gangtok

GANGTOK,October1 : The Reserve Bank Of India will take into account inflationary pressures when it reviews its monetary policy on October 27, the central bank's head said on Thursday.

The RBI won't set a calendar for carrying open-market operations in the October-March period, Governor Duvvuri Subbarao said at a conference after a meeting of the central bank's board in Gangtok in the Northeastern state of Sikkim.

The central bank had said in March it will buy back 800 billion rupees ($16.75 billion) of government securities from the market during the April-September period to support the government's market borrowing plan. It has so far purchased 574.87 billion rupees of bonds.

"That (calendar on open-market operations) sort of a program is no longer necessary," Mr. Subbarao said. "We will be proactive and will manage liquidity actively."

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