Jalan says no repo rate cut now

MUMBAI: The Reserve Bank of India is not currently considering a repo rate cut, the central bank''s governor said on Friday on the sidelines of an infrastructure seminar.
The central bank borrows money from the market at the repo rate, which is currently at 5.5 per cent. "We are not contemplating any repo rate cut just now," said Governor Bimal Jalan in response to a question. "I don''t have a date in mind but it is not in the near future."
He said that there was no need for a repo rate cut now and that the present level was comfortable.
"Its of no great consequence.. we are trying to stabilise these things," he said in response to a query about yields on 91-day treasury bills falling below the repo rate.
Jalan acknowledged that foreign exchange inflows into the country were causing a liquidity management problem.
"Forex inflows are good to have, but yes, they are causing a problem in monetary management as far as liquidity goes," he said.
India has record foreign exchange reserves of nearly $67 billion.