RBI sticks to status quo

The Reserve Bank of India (RBI) on Tuesday kept the key interest rates and cash reserve ratio (CRR) unchanged and asked the government to take urgent measures to rein in the precariously high current account deficit (CAD). ‘The policy stance is guided by the need for continuous vigil and preparedness to pro-actively respond to risks to the economy from external developments, especially those stemming from global financial markets,’ said RBI Governor Duvvuri Subbarao.