India central bank keeps rate on hold but says ready to act swiftly

Sri Lanka's Prime Minister Ranil Wickremesinghe arrives with flowers to receive blessings at the Gangaramaya Buddhist Temple, Colombo, Sri Lanka on Wednesday 4 April 2018. On wednesday (4), Wickremesinghe survived a no-confidence motion in the Sri Lankan parliament with a 46 vote majority after a 12-hour debate with 122 MPs voted in his support while 76 MPs voting to remove the prime minister. (Photo by Tharaka Basnayaka/NurPhoto via Getty Images)

MUMBAI, October 24, 2008 (AFP) – India’s central bank kept its key interest rates steady on Friday but declared it was ready to take “unconventional and swift” measures to deal with the global financial crisis. “This (crisis) is unchartered territory with no standard or conventional solutions,” Reserve Bank of India governor D. Subbarao said in his mid-term annual monetary policy review.

“In this context, we will be ready to respond swiftly, employing conventional and unconventional measures,” he said.

The bank kept its leading repo rate at which it lends to commercial banks on hold after cutting it Monday by a surprise full percentage point to 8.0 percent. It has also injected billions of dollars into the financial system to spur lending and kick-start the economy.