Date:27/07/2006 URL: http://www.thehindubusinessline.com/2006/07/27/stories/2006072702770600.htm

Back `RBI has lifted uncertainty'

Our Bureau

Kolkata, July 25

Mr P.K. Gupta, CMD of United Bank of India, noted that the apex bank has dispelled uncertainty by leaving key rates unchanged, although there is an increase in short-term rates. "This will help stabilise the market's expectations on future trends," he maintained. Credit growth had remained buoyant and continued to stay ahead in a fairly satisfactory manner, indicating the underlying growth potential in the economy, he noted, adding that the banking sector will in future hold a positive outlook on the economy. Globally, there is a focus on growth and vigilance by central banks will remain a major input for monetary strategy, it is pointed out.