Credit policy review on Nov 3

Reserve Bank of India will carry out a mid-term review of monetary and credit policy for 2003-04 on November 3.

RBI governor Y V Reddy, who took over last month, will hold a meeting with chief executives of major scheduled commercial banks for the mid-term review on November 3, the apex bank said in a release in Mumbai on Friday.

Also Read The Monetary and Credit Policy First Half of 2003-2004

The apex bank will review the gross domestic product and inflation outlook, which it had pegged at six per cent and 5-5.5 per cent for the fiscal respectively, in April.

Former RBI governor Bimal Jalan had in August hinted at an upward revision in GDP as the monsoon has been better than expected and inflation had come down.

The market is also expecting a 0.25 to 0.5 per cent cut in the bank rate, which is currently at six per cent.

RBI, in April, had said that unless the domestic and international circumstances change, the policy bias in regard to bank rate would be to keep it stable until the mid-term review.

The apex bank had reduced the cash reserve ratio by 0.25 per cent at 4.5 per cent and later cut the one day and 14-day repo rate under the liquidity adjustment facility by 0.5 per cent to 4.5 per cent in August.

This year the mid-term review has been shifted to November as against having it in the last week of October due to the Diwali festival.