India's central bank in its Jan. 29 monetary policy announcement left the repurchase rate unchanged at 7.75 percent, maintained the reverse repurchase rate at 6 percent, and held its cash reserve ratio at 7.5 percent. The Reserve Bank may come under renewed pressure after the U.S. Federal Reserve cut the benchmark interest rate by half a percentage point to 3 percent on Jan. 30, the second cut in nine days, to avert a recession in the world's largest economy. Certainly, going by the foreign exchange reserves data capital inflows to India continue at a nifty pace, and they rose from 284.8 billion dollars to 288.3 billion dollars in the week ending 25th January 2008.
