The Reserve Bank of India will announce the annual monetary policy for the current financial year on May 3, 2013 as there has been a constant demand from the bankers for further reduction of interest rates to spur economic growth.
The RBI Governor, Mr. D Subbarao will announce the Monetary Policy Statement 2013-14 on May 3, 2013, the central bank said in a statement.
The announcement will be done in a meeting with the chief executives of banks, it said.
In its last policy review in March, the RBI reduced short-term lending rate by 0.25% to 7.5%.
Accordingly, the short-term borrowing rate came down to 6.5 per cent. However, the Cash Reserve Ratio (CRR) was retained at 4 per cent on the expectation that government will start spending more.
Earlier this week, the Finance Minister, Mr. P Chidambaram had argued for further interest rate cut as headline inflation has softened, and a pressing need to push growth to the potential level of 8 per cent.