Ruling out a repo rate cut in the near future, Reserve Bank of India Deputy Governor Rakesh Mohan said on Thursday that the 0.25 per cent cut by US Federal Reserve would have no impact on the macro economy and monetary conditions in India.
"RBI's financial market committee met on Thursday to note Federal Reserve's action and it saw no difference in macro economy and monetary conditions within the country, therefore there is no reason to change our policy stance," Mohan told reporters in Mumbai on the sidelines of a function to launch the multi-banking system for collection of central excise duties.
Referring to the repo rate, he said, "There will be no cut for quite some time since neither the type of inflation nor monsoon situations are yet clear."
On inflation, which RBI has placed in the range of 5.0-5.5 per cent for this fiscal, he maintained that the policy stance continued on this front.
Mohan, referring to the liquidity situation in India, said, "It is quite easy at present. We are watching it carefully and will take whatever action is necessary".
"RBI watches the situation on daily basis and actions, which may include a possibility of hiking the notified amount of treasury bills, open market operations and greater borrowings, are always available," the deputy governor added.
Referring to the foreign inflows and arbitrage opportunities, he said the central bank would soon come out with details on composition of inflows for fiscal 2002-03.
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