RBI highlights bad debts as it holds rates
Central bank may create bad bank to tackle NPA problem
The Reserve Bank of India (RBI) kept its policy rate steady today (February 8), citing a determination to keep inflation down, and highlighted the high levels of non-performing assets (NPAs) in Indian banks, which it says are impairing transmission.
All six members of the monetary policy committee (MPC) voted to hold the policy rate unchanged at 6.25%, surprising many analysts, who had expected a cut. A central concern is that while headline inflation has been subdued thanks to low vegetable
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