RBI decisions to ensure balance between growth, inflation

Experts feel move is well-timed and practical

The Reserve Bank's credit policy was on expected lines, and the reduction in the cash reserve ratio (CRR) would help support growth, after the sharp downward revision in the forecast for the current financial year, opined experts.

The RBI on Friday kept its key interest rate unchanged citing inflation risks, but cut the Cash Reserve Ratio that banks are required to park with the central bank, boosting money with lenders to support a slowing economy.

Harsha Vardhan Agarwal, President, FICCI, said that while the RBI's stance on the repo rate was widely expected, the industry body welcomes the 50-bps cut in the CRR rate.